FHA loan
A forgiving path in for first-time buyers
3.5% down with a 580 score, higher debt-to-income flexibility and gift-friendly down payment rules.
The short version.
FHA loans are insured by the Federal Housing Administration, which lets lenders approve buyers who are still building credit or carrying student loans and car payments. It is the loan I recommend most often to first-time buyers in Kissimmee and Sanford who have steady income but a thin or bruised credit history.
The trade-off is mortgage insurance. FHA charges an upfront premium that is rolled into the loan and a monthly premium that usually stays for the life of the loan with less than 10% down. Many clients use FHA to get in now, then refinance to conventional once their score and equity improve.
Often the right fit for
- First-time buyers rebuilding credit
- Buyers using family gift funds
- Higher student loan balances
What I handle for you.
- Credit coaching plan if your score is under 640
- FHA vs conventional total-cost comparison
- Florida down payment assistance screening (sample programs)
- Seller credit strategy for closing costs up to 6%
- Property condition walkthrough before appraisal
- Future refinance plan to drop MIP
Credit and budget review
We look at your full picture, including rent history and collections that may not matter.
Approval with assistance
I layer in any eligible assistance and structure seller credits into your offer.
Appraisal and close
FHA appraisals check property condition too, so I prepare you for common repair items.
Why borrowers choose it.
Lower credit bar
Approvals are possible with scores in the 580s and limited credit history.
Gift-friendly
Your entire down payment can come from a family member.
Assumable
A future buyer may take over your low rate, which can help resale.
What moves your approval and price.
These are the factors I review first. Every lender adds its own overlays, which is why comparing matters.
| Factor | What to know |
|---|---|
| Credit score | 580+ for 3.5% down, 500 to 579 requires 10% down. |
| Loan limits | Orange County FHA limit is $524,225 for a single-family home (sample figure). |
| Property condition | Peeling paint, missing handrails and roof issues can require repairs. |
| Occupancy | Primary residence only, you must move in within 60 days. |
FHA questions, answered.
Still wondering about something specific? Text or call and you will hear back from Marcus, usually within two hours.
With 10% or more down it ends after 11 years. Otherwise it stays, so most people refinance to conventional once they reach about 20% equity.
Not always. Medical collections are generally ignored, and small non-medical balances may not need to be paid. We review each one together.
Yes. You can buy a two to four unit property with 3.5% down as long as you live in one of the units.
Related programs.
Conventional loan
As little as 3% down for first-time buyers, mortgage insurance that falls off, and terms from 10 to 30 years.
Explore Conventional
USDA loan
100% financing in eligible suburban and rural areas, with income limits and low guarantee fees.
Explore USDA
Refinance
Rate-and-term, cash-out, FHA streamline and VA IRRRL options, with a break-even analysis every time.
Explore Refinance
A note from Marcus
Get real answers in twenty minutes.
No credit pull, no pressure. Bring your questions and leave with a clear plan and real numbers.