Low down payment
FHA loans for buyers who need a little more room.
FHA helps first-time buyers and others who can't meet conventional down-payment requirements. With satisfactory credit, enough cash to close, and steady income, you can put as little as 3.5% down.
- Down payment
- 3.5%
- Min. credit
- 580
- Gift funds
- Allowed
Best for
- First-time buyers
- Credit scores in the 580–680 range
- Higher debt-to-income ratios
How it works
The FHA insures the loan, which lets us approve borrowers a conventional program would decline. Down payment can come from savings, a gift from family, or a down-payment assistance program like IHDA.
Mortgage insurance
FHA loans carry an upfront premium (financed into the loan) and an annual premium paid monthly. Many borrowers refinance into a conventional loan once they have 20% equity to drop it.
Questions people ask
- Is FHA only for first-time buyers?
- No. Anyone who meets the guidelines and will occupy the home can use FHA.
- Are there loan limits?
- Yes. FHA limits vary by county and adjust each year; your loan officer will confirm the current limit for McHenry, Lake, Kane, or your county.
Often compared with
Next step
Ready to talk to a lender who can actually decide?
Start the application online, or call and ask for the mortgage department. Either way, a real human in Crystal Lake or Appleton takes it from there.