FHA financing may work when conventional requirements feel out of reach.
Government-insured through the Federal Housing Administration, FHA loans may allow for lower down payments and more flexible credit requirements than conventional financing. Fit depends on your full credit and financial picture.
What to expect
A process built to keep the next step clear.
Royal United starts by reviewing whether FHA is the right fit based on your credit, down payment, and goals — then moves through application, appraisal, and underwriting with one advisor keeping each step organized.
Step 1
Understand your options
The first step is determining whether FHA is the right structure — compared to conventional alternatives — based on your credit, down payment, and long-term goals.
- 1.Review your credit, income, and down payment position
- 2.Compare FHA and conventional structures based on your profile
- 3.Confirm loan limits for your area and target price range
Step 2
Move through application and underwriting
Once a direction is chosen, the process follows a clear path through application, appraisal, and underwriting — with your advisor keeping things organized.
- 1.Sign the application electronically
- 2.Complete a property appraisal
- 3.Provide required documents and complete underwriting
Step 3
Close and take ownership
The final stage is about confirming terms, reviewing the MIP structure, scheduling closing, and getting to the finish line with full clarity on your commitment.
- 1.Receive final approval and confirm the closing date
- 2.Review final loan terms including MIP structure
- 3.Sign closing documents and take possession of the home
Program benefits
What FHA financing may offer.
General information only. Actual eligibility and benefits depend on your credit, income, property, and the full application.
Lower minimum down payment
FHA loans may allow as little as 3.5% down for qualifying borrowers — reducing the upfront cash needed to close compared to many conventional options.
More flexible credit requirements
FHA financing is designed to allow for credit profiles that may fall outside conventional guidelines, giving more borrowers a potential path forward.
Fixed-rate loan terms available
FHA fixed-rate options provide predictable principal and interest payments over the life of the loan, regardless of what market rates do.
Who this may be a fit for
FHA financing may benefit certain borrower situations.
Fit depends on your goals, credit, income, and property. A loan advisor can help determine whether this is the right direction for your situation.
First-time buyers
May benefit buyers who are building credit history or haven't had time to accumulate a large down payment. Fit depends on your full financial picture.
Buyers with limited savings
The lower down payment requirement may reduce the upfront cash needed to close on a home — depending on your credit score and loan amount.
Those outside conventional thresholds
May work for borrowers with credit histories or profiles that fall short of conventional qualification guidelines. Eligibility depends on your situation.
Not a guarantee of eligibility or approval. Qualification depends on your full credit and financial profile.
What our clients say
22,000+ five-star reviews.
"Fast action...accurate...quick closing."
Judy Freeman
"Evan, was my second person I called when searching for a cash out loan. His patience, with explaining how his company may be just what we were looking for was impressive, extremely competitive with other lenders. The process was so much easier with his attention to detail of our goals. The closing cost were better than any other lender that I had contacted. Evan was a the kind of person I would like to have as a neighbor. Hats off to Royal United mortgage and there team."
Stanley Ward
"Great Experience."
mckin285
"Very professional. Process was easy flowing. They requested their needs and I submitted them in a timely manner which made the processing of all paperwork finished quickly. I would definitely recommend Royal Mortgage for the processing of refinancing or home equity funds."
Emma Clarke
"very good experience he made this so easy. never had anyone work this hard for us. complete ease from start to finish. great job"
dennis
"Smooth and easy I was a first time home buyer and he made sure to help me every step of the way. I couldn’t be happier that I got him to help me the this process and would definitely recommend him to anyone!"
Jon
"it has been an excellent experience the entire process and follow up by Jacob has been wonderful and surprising. he follows up and walks through the process with you and always answers any questions. my husband and i have told so many of our friends about him. he definitely is an asset to the company"
CLARA
"Great experience"
Teri O'Brien
"Danielle was excellent and very professional!"
KING JAMES BORDERS
"I was treated well as a customer and everyone was nice and very helpful with my transaction."
Anthony Outten
"They were really good in helping us."
Lafrances Garrett
"My agent was very attentive and helpful and we spoke almost daily, making the entire process painless!! I am impressed"
Serenity Farms Prepping
Frequently asked questions
Common questions about FHA loans.
What credit score do I need for an FHA loan?
FHA guidelines allow for credit scores as low as 580 for the 3.5% down payment option, or 500–579 with a 10% down payment. Actual lender requirements may be higher. Eligibility depends on your full credit and financial profile.
How much down payment does an FHA loan require?
FHA loans may allow a minimum down payment of 3.5% for qualifying borrowers with a 580 or higher credit score. Borrowers with scores between 500 and 579 may still qualify with 10% down. Actual requirements depend on your profile and the lender.
What is mortgage insurance premium (MIP) on an FHA loan?
FHA loans require an upfront mortgage insurance premium — typically 1.75% of the loan amount — and an annual MIP paid in monthly installments. Unlike conventional PMI, FHA MIP may persist for the life of the loan depending on your down payment and loan term.
Can I use an FHA loan to buy a rental or investment property?
FHA loans are limited to primary residences. You must intend to occupy the property as your primary home to use FHA financing.
Are there loan limits on FHA financing?
Yes. FHA loan limits vary by county and are set annually by HUD based on local home price levels. A loan advisor can confirm current limits for your target location.
How does FHA compare to conventional financing?
FHA may offer lower credit thresholds and a smaller minimum down payment, while conventional loans may provide more property type flexibility and no mortgage insurance with 20% or more down. The better fit depends on your credit profile, down payment, and goals.
General information only. Not financial, legal, or tax advice. Eligibility and terms depend on your individual situation and are subject to lender requirements.
Ready to review your options?
Ready to see if FHA financing fits your situation?
A Royal United loan advisor can compare FHA and conventional options based on your credit, down payment, and goals — before you commit to anything.