What Are FHA Loan Requirements?

FHA loans are government-insured mortgages designed to make homeownership more accessible, especially for first-time buyers. The minimum credit score is 580 for a 3.5 percent down payment, or 500 with 10 percent down. Your debt-to-income ratio should generally be below 43 percent, though some lenders allow up to 50 percent with compensating factors. FHA loans require both an upfront mortgage insurance premium of 1.75 percent and an annual premium that is split into monthly payments. The property must also meet FHA appraisal standards for safety and habitability.