Mortgage insurance
FHA loans carry mortgage insurance premiums. We show the full monthly cost so there are no surprises.
FHA loans
A government-backed loan for real-world credit.
FHA loans are insured by the Federal Housing Administration and designed for buyers who need a lower down payment or more flexible credit than a conventional loan requires.
Why buyers choose FHA
Lower barriers to your first â or next â home.
With down payments starting at 3.5% and more forgiving credit guidelines, an FHA loan opens the door for buyers who are building credit or short on a big down payment.
- Down payments as low as 3.5%
- More flexible credit requirements than conventional
- Gift funds allowed for the down payment
The trade-offs, honestly
What to weigh with FHA.
Loan limits
FHA limits vary by county. Jakelo checks your area automatically during your rate check.
Refinance later
Many FHA buyers refinance into a conventional loan once they've built equity, dropping mortgage insurance.
Primary residence
FHA loans are for homes you live in, not investment properties.
Property standards
The home must meet basic FHA condition standards, confirmed at appraisal.
Down-payment gifts
Family gift funds are allowed, which can make FHA especially accessible.
Good to know
Common questions.
What credit score do I need for an FHA loan?
FHA is more flexible than conventional financing and is designed to help credit-building buyers. Check your rate to see your options â it uses a soft pull with no score impact.
How much is the down payment?
As little as 3.5% of the purchase price, and it can come from gift funds from family.
Do FHA loans have mortgage insurance?
Yes â an upfront and an annual premium. Jakelo includes both in the monthly figure it shows you, so the number is real.
Can I refinance out of an FHA loan later?
Often, yes. Once you've built enough equity, refinancing into a conventional loan can remove mortgage insurance. Jakelo will run that math when the time comes.
Part of Loan options.
See if FHA is your best fit.
A soft credit check compares FHA against every option you qualify for.