FHA Loans

What is an FHA Loan?

FHA loans are mortgages insured by the Federal Housing Administration. They're designed to help buyers who may not qualify for conventional financing, particularly first-time homebuyers, those with lower credit scores, or buyers with limited savings for a down payment.

FHA Loan Requirements

Credit Score & Down Payment

• 580+ Credit: 3.5% minimum down payment
• 500-579 Credit: 10% minimum down payment
• Below 500: Not eligible for FHA

Income & Employment

• Stable employment history (2 years preferred)
• Verifiable income
• DTI ratio up to 43% standard (50% possible with compensating factors)

Property Requirements

• Must be primary residence
• Must meet FHA minimum property standards (safety, security, soundness)
• Requires FHA appraisal (stricter than conventional)

FHA Loan Limits in Georgia (2026)

Property Type	Most GA Counties	High-Cost Areas
1-unit	$472,030	Up to $766,550
2-unit	$604,400	Up to $981,500
3-unit	$730,525	Up to $1,186,350
4-unit	$907,900	Up to $1,474,400

Most Georgia counties use the floor limit. Metro Atlanta has higher limits in some areas.

FHA Mortgage Insurance (MIP)

All FHA loans require mortgage insurance premium (MIP):

Upfront MIP

• 1.75% of loan amount
• Can be rolled into the loan
• Example: $300,000 loan = $5,250 upfront

Annual MIP

• 0.55% for most loans (paid monthly)
• Example: $300,000 loan = ~$137/month
• Duration: Life of loan with <10% down, or 11 years with 10%+ down

FHA Appraisal Requirements

FHA appraisals are stricter than conventional. The property must meet minimum standards:

• Safety: Working utilities, no exposed wiring, handrails on stairs
• Security: Exterior doors must lock, windows intact
• Soundness: No major structural issues, roof in reasonable condition
• No Peeling Paint: Especially in pre-1978 homes (lead paint concern)

If issues are found, they must be repaired before closing—often a sticking point with as-is sales.

FHA vs. Conventional

Feature	FHA	Conventional
Min Credit Score	580	620
Min Down Payment	3.5%	3-5%
Mortgage Insurance	Life of loan*	Removable at 20%
Loan Limits	$472,030	$766,550
DTI Ratio	Up to 50%	Up to 45%
Property Types	Primary only	All types

*With 10%+ down, MIP drops after 11 years

When FHA Makes Sense

• Credit score 580-660: FHA offers better terms than conventional
• Limited savings: 3.5% down is achievable
• Gift funds: Family can cover 100% of down payment
• Higher debt: FHA allows higher DTI ratios
• Recent credit events: Bankruptcy or foreclosure with waiting period met