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FHA 203(b) Mortgage Insurance

U.S. Department of Housing and Urban Development (HUD)

Loan up to FHA limits (varies by county); 3.5% down with 580+ FICO

Overview

Low down payment FHA-insured loan — the workhorse first-time buyer program with just 3.5% down.

Detailed requirements

FHA insures the loan, allowing lenders to offer better terms. 3.5% down payment with credit score of 580+. Down payment can be a gift. Mortgage insurance required (UFMIP + monthly MIP). Loan limits vary by county. Property must pass FHA appraisal.

Eligibility at a glance

Min credit score
580
Owner-occupied required
Yes
Property types
single_family, condo, manufactured, 2-4_unit

Note: 10% down required for credit scores 500-579. Must be primary residence.

Ready to apply?

A free grant specialist walks you through eligibility and the official application in one short call.

Last verified 2026-09-02. Updated weekly. Always confirm details on the official program page before applying.