Top 10 Most Frequently Asked Questions About FHA Loans: What Every Homebuyer Should Know

Are you considering buying a home and wondering if an FHA loan is right for you? FHA loans are one of the most popular mortgage options for first-time homebuyers and those with less-than-perfect credit. In this guide, we answer the top 10 most frequently asked questions about FHA loans to help you understand the benefits, eligibility, and requirements.Whether you’re looking to buy in Miami-Dade, Broward, Orange, Polk, or Lake County, Florida, or anywhere else in the U.S., this comprehensive FAQ will clear up your biggest FHA loan questions.

1. What is an FHA Loan?


An FHA loan is a mortgage insured by the Federal Housing Administration. It’s designed to help borrowers with lower credit scores and smaller down payments qualify for financing. FHA loans offer more flexible underwriting guidelines than conventional loans, making homeownership accessible to many.



2. Who is Eligible for an FHA Loan?

To qualify for an FHA loan, you generally need to:

  • Have a steady source of income

  • Use the home as your primary residence

  • Meet minimum credit score requirements (usually 580 or higher for 3.5% down)

  • Stay within FHA loan limits for your area



3. What Credit Score Do I Need for an FHA Loan?

  • Credit scores of 580 or above typically qualify for the lowest down payment of 3.5%

  • Scores between 500 and 579 may qualify but require a 10% down payment
    Note: Individual lenders may have stricter credit requirements. We at Cornerstone can provide FHA loans with 500 score. Call for details.



4. How Much Do I Need for a Down Payment?

With an FHA loan, the minimum down payment can be as low as 3.5% of the purchase price, making it an ideal option for buyers with limited savings.



5. Are FHA Loans Only for First-Time Homebuyers?

No!  FHA loans are available to anyone purchasing a primary residence, regardless of whether it’s their first home or not.



6. What Are FHA Loan Limits?

Loan limits vary by county and are adjusted yearly. For example, counties in Florida like Miami-Dade and Broward have higher limits due to local home prices. Check current FHA loan limits on the HUD website or ask a trusted loan officer.



7. Do I Have to Pay Mortgage Insurance on an FHA Loan?

Yes. FHA loans require two types of mortgage insurance:

  • Upfront Mortgage Insurance Premium (UFMIP): About 1.75% of the loan amount, paid at closing or rolled into the loan

  • Monthly Mortgage Insurance Premium (MIP): Added to your monthly payment, typically for the life of the loan



8. Can I Use Gift Funds for My Down Payment?

Absolutely. FHA guidelines allow gift funds from family members, employers, or approved organizations to be used for your down payment and closing costs—provided the gift is properly documented.



9. What Types of Properties Can I Buy With an FHA Loan?

You can use an FHA loan to finance:

  • Single-family homes

  • 2-4 unit properties (with owner occupancy)

  • FHA-approved condominiums

  • Manufactured homes (meeting FHA criteria)



10. Can I Get an FHA Loan If I Have Student Loans or Other Debt?

Yes. Lenders will review your debt-to-income (DTI) ratio, including student loan payments, to ensure you can afford the mortgage. FHA guidelines are often more flexible than conventional loans, making it easier for borrowers with existing debt to qualify.


Ready to Buy Your Home with an FHA Loan?


If you’re looking for a reliable FHA loan lender in Florida’s Miami-Dade, Broward, Orange, Polk, or Lake Counties, I’m here to help. Contact me today to get pre-qualified and start your journey to homeownership


Lourdes "Lulu" Cuervo  NMLS # 254780

email: LCuervo@cfmtg.com

Ph: 305-790-4222


Cornerstone First Mortgage

4500 Biscayne Blvd. # 320

Miami, FL 33137




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* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.