02 · Loan Program

FHA Loans

A government-backed loan program designed to make homeownership accessible to buyers with lower credit scores and limited down payment funds.

Who an FHA Loan Is For

First-time buyers with credit scores as low as 580, or 500 with a 10% down payment
Buyers with limited savings who need the lowest possible down payment threshold (3.5%)
Borrowers with recent credit events such as a collections, medical debt, or a prior hardship
Buyers purchasing homes in need of minor repairs, using the FHA 203(k) renovation variant

How It Works

From first conversation
to closing day.

FHA Pre-Approval

Tanya confirms your credit score, employment history, and debt load to establish your FHA eligibility and purchase price range.

FHA Appraisal

An FHA-approved appraiser inspects the property for both value and minimum property standards. The home must be safe, sound, and secure.

Underwriting & MIP

Your file is reviewed against FHA guidelines. An upfront mortgage insurance premium (1.75% of the loan) is added at closing; annual MIP is built into the monthly payment.

Closing

Closing costs can be rolled into the loan or covered by seller concessions. FHA allows up to 6% in seller contributions.

Key Benefits

What makes this program
work for the right borrower.

3.5% Down at 580 Credit

The lowest down payment threshold of any standard purchase loan. Funds can come from gift money, down payment assistance, or savings.

Flexible Credit History

FHA allows borrowers with prior collections, medical debt, and even recent derogatory events to qualify, subject to waiting periods.

Seller Can Cover Up to 6% of Costs

FHA allows the seller to contribute up to 6% of the sale price toward closing costs, reducing out-of-pocket cash at closing.

Requirements Snapshot

Quick-reference guidelines.

Minimum Credit Score	580 for 3.5% down; 500–579 for 10% down
Down Payment	3.5% (580+ credit); 10% (500–579 credit)
Debt-to-Income Ratio	Up to 43% standard; up to 57% with compensating factors
Mortgage Insurance	Upfront MIP: 1.75% of loan; Annual MIP: 0.55–1.05% for the life of the loan
Employment History	2-year employment history required; self-employed requires 2 years of tax returns

Edge Home Finance, LLC • NMLS #891464 • 5860 Baker Road, Minnetonka, MN 55345

Equal Housing Opportunity Lender. This is not a commitment to lend. All loans subject to credit approval.

Licensed in: Georgia and Florida • NMLS Consumer Access: www.nmlsconsumeraccess.org • Licensing & Disclosures

Equal Housing Opportunity