FHA Loan Guide
The real list, with the difference between FHA's rules and lenders' overlays made plain, because that difference is where most "no"s come from.
The short answer
To qualify for an FHA loan in 2026 you generally need a 580+ credit score with 3.5% down (or 500-579 with 10% down), steady documented income, a debt load the FHA's automated underwriting accepts, and a primary residence that passes the FHA appraisal, per HUD Handbook 4000.1. Lenders add their own overlays on top, and full underwriting always applies.
Seven things, per HUD Handbook 4000.1: qualifying credit, the minimum down payment for your credit tier, steady documented income, an acceptable debt-to-income picture, owner occupancy, a property that passes the FHA appraisal, and mortgage insurance.
| Requirement | FHA rule (the floor) | Worth knowing |
|---|---|---|
| Credit score | 580+ for 3.5% down; 500-579 with 10% down | FHA floors; lender overlays are commonly higher |
| Down payment | 3.5% minimum (gift funds allowed) | 10% with a lower-tier score |
| Income | No minimum income; must be steady and documented | Generally a 2-year history |
| DTI | No single hard cap; evaluated by the TOTAL Scorecard | Manual underwriting is tighter |
| Occupancy | Primary residence, owner-occupied | Generally occupy within 60 days |
| Property | Must pass the FHA appraisal (safe, sound, secure) | Within the county FHA loan limit |
| Mortgage insurance | Required: upfront premium plus monthly MIP | Life-of-loan for most low-down loans |
The FHA tiers, per HUD Handbook 4000.1: 580 and above qualifies for the minimum 3.5% down payment; 500-579 requires 10% down; below 500, FHA isn't available.
Read those as the door, not the welcome mat: lenders commonly overlay higher minimums, and a file at the floor gets the fullest underwriting scrutiny. The difference matters in practice because overlays vary by lender, so the same file can land differently at different shops, which is exactly what I shop for. The deeper credit conversation, overlays, lower-credit reality, manual underwriting, lives in the FHA credit score guide Gift funds can cover the entire down payment with documentation, per HUD.
No minimum income exists, per HUD Handbook 4000.1. FHA wants income that is steady, documented, and likely to continue: generally a two-year employment and income history, with W-2, self-employed, retirement, and benefit income all eligible with the right paperwork.
Job changes and gaps are explainable, not disqualifying: a gap with a return to work, a move to a better-paying job in the same field, a graduate entering their profession, all of these fit within the guidelines with documentation. Self-employed buyers typically document two years of returns; for how an underwriter turns those returns into qualifying income, see how self-employed income is calculated. If your income story has a wrinkle, tell me the wrinkle first; underwriters read explanations far better than surprises.
There is no single hard cap, per HUD Handbook 4000.1. FHA evaluates your debt-to-income ratio through the TOTAL Scorecard, its automated underwriting system, which weighs DTI alongside credit, reserves, and the whole file, and often accepts higher ratios than conventional loans.
The internet loves to quote one number as "the FHA DTI limit." The truth: files with stronger compensating factors clear ratios that would sink weaker files, and manually underwritten loans face tighter ratios with documented compensating factors. So the useful question isn't "what's the limit," it's "does my file clear it," and that takes ten minutes with your actual numbers, not a listicle.
Usually, after a waiting period. The general HUD guidelines, per Handbook 4000.1: about 2 years from a Chapter 7 discharge, 12 months of satisfactory plan payments with court permission for Chapter 13, and about 3 years after a foreclosure or deed-in-lieu, each with documented extenuating-circumstance exceptions.
Three honest notes. These are guidelines, not approvals: lenders overlay their own seasoning rules on top. Re-established credit since the event matters as much as the calendar: clean payment history after the storm is what underwriters actually read. And FHA is genuinely the most forgiving major program here, which is why "FHA after bankruptcy" is a real path and not a gimmick. Bring me your dates and I'll map them against current guidelines, no charge, no judgment.
FHA is for the home you live in: primary residence; owner-occupant; intend to occupy generally within 60 days, per HUD Handbook 4000.1. No second homes, no pure rentals, though a 2-4 unit property works if you occupy one unit.
The property itself must pass the FHA appraisal, which checks value plus HUD's minimum property standards (safe, sound, secure), and it must sit within your county's FHA loan limit. Condos need an FHA-approved project or Single-Unit Approval. Each of those topics has its own section in the complete FHA guide and its own deep page in this series. None of them is a dealbreaker; they're checkpoints I route around every week.
The basics live in the complete FHA loan guide.
Don't pre-reject yourself; that's the underwriter's job, and half the time they say yes. Tell me your credit range, income shape, and timeline, and I'll give you an honest read with the overlays that actually apply.
Talk to NikoLast updated: June 10, 2026
Important FHA loan disclosures
This page is educational and not an offer to lend, a commitment to make a loan, or a promise of approval. FHA floors are program rules, not approvals; lender overlays vary. Guidelines may change without notice. All loans are subject to credit and property approval.
