Buying your first home or struggling with credit history? The FHA Loan could be your best way to buy a home with as little as 3.5% down and flexible credit requirements.
In this guide, you’ll learn how to apply for an FHA Loan, what documents you’ll need, and how Loan Factory’s AI-powered system (MOSO) helps you get approved faster.
What Is an FHA Loan?
An FHA Loan is a government-backed mortgage insured by the Federal Housing Administration.
It allows borrowers with lower credit scores or smaller down payments to qualify for a home loan — something that’s often impossible with conventional mortgages.
Unlike government-issued loans, FHA loans are offered by private lenders (like Loan Factory) and insured by the FHA to reduce lender risk.
→ Learn more about FHA Home Loans options
FHA Loan Benefits (2025 Highlights)
Benefit | Details |
| Low Down Payment | Only 3.5% required with a 580+ credit score (FHA.COM). |
| Flexible Credit Approval | Borrowers with 500–579 may qualify with 10% down. |
| Easier DTI Limits | FHA accepts higher debt-to-income ratios than conventional loans (ConsumerFinance.gov). |
| Gift Funds Allowed | Down payment can come from family or assistance programs. |
| Streamline Refinance | FHA Streamline makes it easy to lower your rate without reappraisal. |
FHA Loan Requirements (Updated for 2025)
Requirement | FHA Standard |
| Credit Score | 580+ for 3.5% down; 500–579 for 10% down (FHA.COM) |
| Debt-to-Income Ratio (DTI) | Typically ≤ 43%, may go up to 50% with compensating factors (Investopedia) |
| Primary Residence Only | Must occupy the home as your primary residence |
| Property Standards | Home must meet FHA safety & appraisal guidelines |
| Mortgage Insurance | 1.75% Upfront + 0.45–1.05% Annual MIP |
| Loan Limits 2025 | $498,257 (low-cost) to $1,149,825 (high-cost areas) (FHA Loan Limits 2025) |
-> Read more: fha loan first time home buyer requirements
Step-by-Step: How to Apply for an FHA Loan?
Step 1 – Review Your Credit & Finances
Get a free credit report, check for errors, and start paying down credit cards.
FHA loans reward steady payment history — even if your score isn’t perfect.
Step 2 – Get Pre-Approved
Submit your basic info (income, employment, debts) to get a pre-approval letter.
This helps you know how much home you can afford and shows sellers you’re serious.
Start your FHA pre-approval online: www.LoanFactory.com/apply
Step 3 – Find an FHA-Approved Lender
Loan Factory is an FHA-approved lender with access to 240+ wholesale lenders, allowing you to instantly compare rates and lock the best offer.
→ Read more: Connect with an FHA Loan Officer Near Me for Easy Approval
Step 4 – Choose Your Home & Make an Offer
Once pre-approved, you can start house hunting within your price range.
FHA requires that the home passes appraisal for safety and condition.
Step 5 – Underwriting & Verification
Your lender reviews income, debts, credit, and the appraisal.
Loan Factory’s AI-driven MOSO system speeds up this step for faster approvals.
Step 6 – Close the Loan
You’ll sign final documents, pay your down payment and closing costs, and get the keys to your new home.
FHA Loan Costs (Know Before You Close)
- Down Payment: 3.5% minimum (580+ score)
- Upfront MIP: 1.75% of loan amount (can be rolled into the loan)
- Annual MIP: 0.45%–1.05%, added to monthly payment
- Closing Costs: Typically 2%–5% of purchase price (Source: ConsumerFinance.gov)
Estimate your total FHA loan cost: www.LoanFactory.com/mortgage_calculator
Why Choose Loan Factory for Your FHA Loan?
- Best Price Guarantee – $1,000 if we can’t beat your offer (Terms)
- AI-Powered MOSO Platform – Automates your loan process from start to finish
- Instant Access to 240+ Lenders – Find the best FHA rate in seconds
- Personal Support – Local advisors to guide you every step
- Transparent pricing, no junk fees
Applying for an FHA loan doesn’t have to be complicated.
With Loan Factory’s MOSO technology, you can compare lenders, apply online, and close faster — all with zero application fees.
Start your journey today
Apply for an FHA Loan Now or call (660) 333-3333 for a free FHA consultation.
Check your personalized FHA rate
FAQ: How to Apply for FHA Loan
