FHA Loan Program

The FHA loan program is designed to help buyers—especially first-time homebuyers—qualify for a mortgage with a low down payment and flexible credit requirements. Insured by the Federal Housing Administration, FHA loans offer competitive rates, more forgiving guidelines, and a practical path to homeownership for borrowers who may not fit strict conventional standards.

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Top 10 Benefits

Low Down Payment

As little as 3.5% down for qualified borrowers.

Flexible Credit Requirements

More forgiving of past credit issues than many conventional programs.

Competitive Fixed Rates

Stable monthly payments with 30-year and 15-year options.

Higher DTI Allowances

Debt-to-income ratios can be more flexible than conventional guidelines.

Gift Funds Allowed

Down payment and closing costs can come from eligible gift sources.

Assumable Loans

FHA loans may be assumable by a future buyer (subject to approval), which can be an advantage if rates rise.

Refinance Options

FHA rate-and-term, cash-out, and streamline refinance options available.

Non-Occupant Co-Borrowers Permitted

Family members can help you qualify on certain transactions.

Renovation Options Available

HA 203(k) programs can finance home purchase and repairs in one loan (when offered).

Ideal for First-Time & Moderate-Income Buyers

Designed to make qualifying more accessible.

How it works

FHA loans follow federal guidelines but are issued by approved lenders. The lender reviews your credit, income, assets, and property information to ensure they meet FHA standards.

You apply for pre-approval to determine your price range and maximum loan amount.

Once under contract, the lender orders an FHA appraisal to confirm value and basic property condition.

Your file is underwritten based on FHA criteria, including maximum loan limits, acceptable DTI, and required mortgage insurance.

At closing, the loan is funded by the lender and insured by FHA, allowing more flexible terms than many conventional loans.

Ongoing, you’ll pay an upfront and annual Mortgage Insurance Premium (MIP) as part of your FHA loan structure.

Required Documents

Personal Identification

  • Valid government-issued photo ID
  • Social Security number
  • Completed loan application

Income & Employment

  • 2–3 months of bank statements
  • Proof of funds for down payment & reserves

Property

  • Purchase contract & property details
  • Appraisal or rental income analysis

Loan Terms

Feature

Detail

Program Type

FHA-insured mortgage for purchase or refinance

Occupancy

Primary residence only

Down Payment / LTV

As low as 3.5% down (up to 96.5% LTV) for qualifying borrowers

Credit Requirements

Flexible minimum scores and guidelines vs. many conventional programs (per current FHA rules)

DTI

Higher DTI ratios allowed than many conventional programs, based on AUS or manual findings

Loan Purpose

Purchase, rate-and-term refinance, cash-out refinance, and FHA streamline (where eligible)

Property Types

1–4 unit FHA-eligible properties, FHA-approved condos, and certain PUDs

Mortgage Insurance

Upfront and annual Mortgage Insurance Premium (MIP) required

Assumability

FHA loans may be assumable, subject to lender and FHA approval

Typical Closing Time

Typically 30–45 days, depending on appraisal, title work, and how quickly documents are provided

BarCorp Financial Group, NMLS #1746897. BarCorp Financial Group is a mortgage broker and does not make commitments or fund loans. Information provided is for general informational purposes only and is not a loan approval, Loan Estimate, or commitment to lend.
All loans are subject to underwriting approval, lender guidelines, and property qualification. Not all applicants will qualify. Product availability, interest rates, and terms are subject to change without notice and may vary by lender and state. Equal Housing Lender.

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