The standard FHA mortgage — 3.5% down, flexible credit, owner-occupied homes
Short answer: with a 580 FICO score you can buy a 1-to-4 unit primary residence with 3.5% down, gift or DPA funds are allowed for the entire down payment, and your maximum loan size is the FHA limit for your county.
The FHA 203(b) is the most common FHA loan. It's a fixed- or adjustable-rate mortgage for a 1-to-4-unit primary residence, with a minimum down payment of 3.5% for borrowers with a FICO score of 580 or higher (or 10% down for scores between 500 and 579). It is insured by the Federal Housing Administration and originated by FHA-approved lenders.
Talk to us about FHA 203(b)
Send your details and a licensed loan officer reviews your scenario. Florida and Colorado only.
1
Your info
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Loan details
Quick answer
How does the FHA 203(b) purchase loan work?
The FHA 203(b) is the standard FHA purchase loan: 3.5% down at a 580 FICO score, 10% down from 500-579, fixed 15- to 30-year terms, and owner-occupied primary residences of one to four units. It carries a 1.75% upfront mortgage insurance premium plus annual MIP, and the seller may contribute up to 6% of the price toward closing costs.
What this means for your mortgage
If you have a 580 score and 3.5% from savings, a gift or DPA, the 203(b) is the FHA loan you will most likely close on.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1
3.5% minimum down payment at 580+ FICO; 10% down at 500-579
One- to four-unit primary residences, with the borrower living in one unit
Upfront MIP of 1.75% may be financed into the loan
Seller-paid closing costs allowed up to 6% of the sale price
Gift funds from family or an eligible agency can cover the entire down payment
County FHA loan limits cap the base loan amount
FHA Loan Rates for FHA 203(b)
Everything on this page about FHA 203(b) comes back to one question: what does the loan actually price at? FHA pricing is set per scenario, so your credit profile, base loan amount, loan-to-value, property type, term and lock period all move the number you actually get. Run your scenario below and compare real FHA options side by side: note rate, provider APR, points or lender credit, and the payment that goes with each one.
Snapshot pricing unavailable
No current pricing snapshot — we never show sample rate figures.
Sample scenario: Florida primary residence, 30-year fixed FHA. Pricing is refreshed once every business day and can change between refreshes.
Loading the most recent FHA pricing snapshot…
Snapshot pricing is an example for the sample scenario described above. It is not a quote, an application, a pre-approval, a rate lock, an offer of credit or a commitment to lend, and it is not personalized to you.
APR is supplied by our pricing provider for the exact scenario priced. Other lender or third-party charges listed separately may not be reflected, and the final APR can change. Your final mortgage disclosures control.
A lender credit reduces eligible closing costs only. It cannot exceed those costs and is never cash back to the borrower.
Get my own FHA pricing
The three cards above are examples from the latest daily snapshot. Enter your own purchase price, down payment, credit score and location to see every eligible FHA option for your scenario, priced right now.
What is an FHA 203(b) loan?
The FHA 203(b) loan is the standard FHA mortgage program and the one most first-time home buyers actually use. It is insured by the Federal Housing Administration, originated by FHA-approved lenders, and lets you buy a 1-to-4 unit primary residence with as little as 3.5% down when your FICO score is 580 or higher. Borrowers scoring 500–579 can still qualify at 90% LTV (10% down).
Because HUD insures the loan against default, lenders can accept credit profiles that conventional underwriting turns away: recent credit rebuilds, thinner files, higher debt-to-income ratios, non-occupant co-borrowers, and gift or grant funds covering the entire down payment. In exchange, every 203(b) loan carries an upfront mortgage insurance premium of 1.75% (usually financed) and an annual MIP collected monthly.
Your maximum loan size is set county by county. In 2026 the FHA floor and ceiling move with the conforming loan limit, so the same 3.5% down payment buys very different homes in Denver versus Miami-Dade. Check your county limit first, then price the payment — that order avoids the most common FHA surprise at contract time.
FHA 203(b) key features and benefits
3.5% minimum down payment (FICO 580+)
Fixed 15-, 20-, 25-, or 30-year terms (or ARM)
1-to-4-unit primary residences
Down payment can come from a gift, grant, or down-payment assistance
Seller can pay up to 6% of closing costs
Assumable mortgage — buyer can take over your rate when you sell
Is an FHA 203(b) loan the right choice for you?
Choose FHA 203(b) if…
Your middle FICO score is between 580 and 680 and conventional pricing is punishing you
You have 3.5% or less saved and want to use gift or down payment assistance funds
Your debt-to-income ratio is above 45% and you need HUD's flexibility
You are buying a 2-to-4 unit home to live in one unit and rent the rest
You had a bankruptcy or foreclosure and are past FHA's shorter waiting periods
Look at another option if…
You have 20% down and a 740+ score — conventional avoids mortgage insurance entirely
You can put 10%+ down with a 700+ score and want insurance that eventually cancels
The home is an investment property or second home
The purchase price exceeds your county FHA loan limit and you cannot cover the gap
Have these ready and a 203(b) pre-approval moves quickly, though timing depends on the lender. Missing income or asset pages are the number one cause of delays.
Identity & residency
Government-issued photo ID for every borrower
Social Security number or ITIN documentation
Two-year residence history with addresses
Income
Last 30 days of pay stubs
W-2s for the past two years
Two years of federal tax returns (all schedules) if self-employed, commissioned, or 25%+ owner
Year-to-date profit & loss for self-employed borrowers
Award letters for Social Security, pension, disability, or child support income
Assets
Two months of full bank statements (all pages)
Most recent retirement or brokerage statement if using those funds
Gift letter plus donor's proof of funds and the transfer trail
Credit & property
Authorization for a tri-merge credit report
Written explanation letters for late payments, collections, or credit inquiries
Bankruptcy discharge or foreclosure documents if applicable
Fully executed purchase contract and all addenda
Homeowners insurance quote and, in flood zones, a flood insurance quote
203(b)-specific
Proof the home will be your primary residence (occupancy certification)
Documentation for any down payment assistance program you are using
Landlord history or 12 months of canceled rent checks if manually underwritten
Who an FHA 203(b) loan is best for
First-time buyers, lower-credit borrowers, and anyone who can't put 20% down on a conventional loan.
FHA 203(b) requirements in 2026
FICO 580+ for 3.5% down; 500–579 for 10% down
Debt-to-income ratio typically up to 43% (higher with compensating factors)
Two-year work history (gaps explained)
Property must be primary residence
Home must pass FHA appraisal & meet HUD Minimum Property Standards
Loan amount within the county FHA loan limit
FHA 203(b) pros and cons
What we like
Easier credit qualification than conventional
Low down payment
Competitive rates
Gift funds allowed for entire down payment
Trade-offs to know
Upfront MIP of 1.75% (financed into the loan)
Monthly mortgage insurance (MIP) for the life of the loan (most cases)
Loan limits cap the price you can buy
Strict property condition requirements
How an FHA 203(b) loan works, step by step
1
Check your county FHA loan limit
The 203(b) maximum is the FHA limit for the county and unit count where you are buying. Anything above that has to be covered with extra down payment or a different program.
2
Get pre-approved with a tri-merge credit report
The lender pulls all three bureaus, verifies two years of income and employment, and issues a pre-approval tied to a specific purchase price and payment.
3
Structure the down payment
3.5% can come from savings, a documented gift from family, an employer program, or a down payment assistance second lien or grant. FHA does not require any of it to be your own funds at 580+.
4
FHA appraisal and property review
An FHA-assigned appraiser confirms value and that the home meets HUD Minimum Property Standards — safety, security, and soundness. Repairs may be required before closing.
5
Underwriting and clear to close
Most files run through TOTAL Scorecard automated underwriting; manual underwrites are available with compensating factors, usually at tighter DTI limits.
6
Close with UFMIP financed
The 1.75% upfront MIP is normally added to the base loan, which is why your final loan amount can reach about 98.25% of the purchase price.
What a 203(b) actually costs on a $400,000 home
Illustrative only — your rate, taxes, insurance, and MIP factor determine the real payment. Run your own numbers in the FHA payment calculator.
Purchase price
$400,000
Down payment (3.5%)
$14,000
Gift, grant, or DPA funds allowed
Base loan amount
$386,000
Upfront MIP (1.75%)
$6,755
Financed into the loan
Total loan amount
$392,755
≈98.25% LTV
Annual MIP (0.55%)
≈$180/mo
Collected monthly with the payment
Seller-paid closing costs
Up to 6%
Negotiable in the contract
How an FHA 203(b) loan helps real borrowers
Illustrative examples built from published FHA rules to show how the math works. They are not customer stories, rate quotes, or guarantees — your numbers depend on credit, county limits, and pricing at the time you lock.
First-time buyer with a 610 score and $16,000 saved
The situation: A household earning $86,000 a year wants a $400,000 home but has only about 4% saved and a 610 FICO score, which is below most conventional pricing tiers.
How the loan helps: FHA's 203(b) program allows 3.5% down at 580+ FICO and prices credit far less aggressively than conventional loans, so the same score does not add points to the rate. Gift funds from family are also allowed for the entire down payment.
Purchase price
$400,000
3.5% down
$14,000
Base loan
$386,000
Financed upfront MIP (1.75%)
$6,755
Total loan amount
$392,755
The outcome: The buyer closes with roughly $14,000 down instead of the $20,000 a 5%-down conventional loan would require, and keeps a reserve cushion after closing.
The situation: A borrower with steady income and a 620 score has almost nothing saved for a down payment on a $350,000 home.
How the loan helps: Layering the FHA DPA second lien (2.5%, 3.5%, or 5% options, 580 FICO floor) on top of a 203(b) first mortgage can cover the entire 3.5% requirement, leaving the borrower responsible mainly for closing costs — which a seller credit can often absorb.
Purchase price
$350,000
Required 3.5% down
$12,250
DPA second lien (3.5%)
$12,250
Cash needed for down payment
$0
The outcome: The borrower buys years earlier than a save-up plan would allow, and the DPA second is repaid over 10 years alongside the first mortgage.
Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.
If the 3.5% is the problem rather than the payment, the FHA DPA Program can cover it as a 10-year repayable second lien at 2.5%, 3.5%, or 5% of the purchase price, with FICO scores from 580. State and county programs — CHFA in Colorado, SHIP and county bond programs in Florida — can also be layered on a 203(b).
It is the standard FHA-insured purchase mortgage for a 1-to-4 unit primary residence, with a 3.5% minimum down payment at a 580 FICO score and 10% down for scores of 500–579.
What credit score do I need for an FHA 203(b) loan?
HUD's floor is 500. To get 3.5% down you need a 580 middle score. Most lenders overlay a 600–620 minimum, so shop the overlay, not just the HUD rule.
Can the down payment be a gift on a 203(b)?
Yes. The entire 3.5% can be a documented gift from a relative, employer, labor union, or an approved down payment assistance program. The donor signs a gift letter and the transfer must be traceable.
How much is FHA mortgage insurance in 2026?
Upfront MIP is 1.75% of the base loan and is usually financed. Annual MIP is most commonly 0.55% for 30-year loans above 95% LTV, billed monthly, and stays for the life of the loan when you put less than 10% down.
FHA 203(b) frequently asked questions
What is an FHA 203(b) loan?
It is the standard FHA-insured purchase mortgage for a 1-to-4 unit primary residence, with a 3.5% minimum down payment at a 580 FICO score and 10% down for scores of 500–579.
What credit score do I need for an FHA 203(b) loan?
HUD's floor is 500. To get 3.5% down you need a 580 middle score. Most lenders overlay a 600–620 minimum, so shop the overlay, not just the HUD rule.
Can the down payment be a gift on a 203(b)?
Yes. The entire 3.5% can be a documented gift from a relative, employer, labor union, or an approved down payment assistance program. The donor signs a gift letter and the transfer must be traceable.
How much is FHA mortgage insurance in 2026?
Upfront MIP is 1.75% of the base loan and is usually financed. Annual MIP is most commonly 0.55% for 30-year loans above 95% LTV, billed monthly, and stays for the life of the loan when you put less than 10% down.
Is the FHA 203(b) only for first-time buyers?
No. There is no first-time buyer requirement. You just have to occupy the home as your primary residence and generally cannot hold two FHA loans at once except in specific relocation or family-size exceptions.
What is the maximum FHA 203(b) loan amount?
It equals the FHA loan limit for your county and unit count. Limits vary widely — high-cost counties are several times the standard floor — so confirm your county before you write an offer.
Can I buy a duplex with an FHA 203(b)?
Yes. Up to four units are eligible as long as you occupy one of them. Rental income from the other units can often help you qualify, and the loan limit rises with unit count.
Is an FHA 203(b) assumable?
Yes. A qualified buyer can assume your FHA loan and its interest rate when you sell, which becomes a real selling advantage when market rates are higher than your note rate.
What is a 203(b) loan in plain language?
It is the standard FHA purchase mortgage — the program most people mean when they say 'FHA loan' — for a one- to four-unit principal residence.
Can I buy a duplex with 203(b)?
Yes, up to four units, as long as you occupy one of them as your principal residence.
Is 203(b) available for a manufactured home?
Yes when the home meets HUD code, sits on a permanent foundation, and is titled as real property.
What is the maximum 203(b) loan amount?
The county limit for the number of units — $541,287 for one unit in standard-cost counties and up to $1,249,125 in high-cost areas for 2026.
Does 203(b) allow a 15-year term?
Yes. Terms other than 30 years are available and carry their own annual MIP schedule.
Can repairs be required before closing?
Yes. If the appraiser flags a health or safety issue, it generally must be corrected before the loan can close.
How much can the seller contribute?
Up to 6% of the sales price toward closing costs and prepaids, within the interested party contribution cap.
Simply Approved Mortgages is not affiliated with or endorsed by HUD, FHA, or any government agency.
Included with your FHA estimate
Get your FHA Pre-Approval Summary.
Complete the short form and we send back a full FHA breakdown: your county loan limit, the minimum FHA down payment, financed upfront MIP, monthly mortgage insurance, and an estimated payment — plus whether down payment assistance can cover your cash to close.
Maximum FHA loan amount for your county
Minimum FHA down payment and cash-to-close estimate
Upfront and annual MIP included
Estimated monthly payment with taxes and insurance
Takes about 3 minutes · No obligation · Summary emailed and shown on screen
Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, FHA guidelines, and final lender approval. Equal Housing Opportunity.
FHA Estimate Summary
Purchase price
$385,000
Down payment (3.5%)
$13,475
Base loan amount
$371,525
Financed UFMIP (1.75%)
$6,502
Est. monthly payment
Shown in your summary
Sample figures for illustration only — not a quote, rate lock, offer of credit or commitment to lend. Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity
Income documentation
Self-employed vs. W-2 employed: what it means for your FHA loan
The program you choose does not change how your income is documented — how you are paid does. FHA does not apply a different credit score, down payment or county limit to self-employed borrowers — it applies a different documentation standard.
FHA documentation differences between W-2 employed and self-employed borrowers
Item
W-2 employed
Self-employed
History required
Two-year employment history, with gaps explained. A job change inside the same field is usually fine.
Generally two years of self-employment. A shorter history can sometimes be considered when there is documented prior experience in the same line of work.
How income is calculated
Base pay from pay stubs and W-2s. Bonus, overtime and commission generally need a two-year history to be averaged in.
Net income from tax returns, averaged and adjusted for allowable add-backs such as depreciation. Write-offs that reduce taxable income also reduce qualifying income.
Documents that open the file
30 days of pay stubs, two years of W-2s, and a verification of employment.
Two years of personal and business returns, year-to-date P&L and balance sheet, and evidence the business is still operating.
Verification at closing
The employer is re-verified shortly before closing; do not change jobs mid-process without telling your loan officer.
Continued existence of the business is re-verified close to closing, typically through a third-party or licensing check.
Most common delay
Unexplained gaps, a new job with variable pay, or a VOE the employer never returns.
A declining year over year, or a large deduction that removes the very income needed to qualify.
What we suggest
Get the VOE moving on day one — it is the item most often outstanding at the end.
Have your accountant produce the year-to-date P&L before you shop, so qualifying income is known before you write an offer.
If you are W-2 employed
Pay stubs covering the most recent 30 days
W-2 forms for the last two years
A verification of employment; HUD Handbook 4000.1 Update 18 tightened the written and electronic VOE rules, so expect the employer record to be verified directly
Documentation of bonus, overtime or commission income if you want it counted
If you are self-employed
Two years of personal federal tax returns, all schedules
Two years of business returns for a partnership, S-corp or C-corp, plus K-1s
A year-to-date profit and loss statement and balance sheet
Business license, CPA letter or equivalent evidence the business is active
General FHA documentation guidance per HUD Handbook 4000.1, including Update 18 changes to written and electronic verification of employment. Requirements vary by borrower, property, lender and program, and all loans are subject to lender underwriting and approval. Sources: HUD Handbook 4000.1
Run the numbers for your county
FHA payment, affordability, closing cost and refinance calculators for the United States
Prefilled with the 2026 HUD reference median of $415,000 for the United States, a 0.90% effective property tax rate and a directional $2,300 annual homeowners premium. Change any input — the interest rate is your own assumption, not an offer.
Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.
Estimates for general educational purposes only. Interest rates shown are assumptions you enter, not quoted rates, and nothing here is a rate lock, APR, payment quote, pre-approval, offer or commitment to lend. Results exclude HOA dues, flood or wind policies, mortgage insurance changes, points and lender-specific fees. FHA upfront MIP of 1.75% and annual MIP of 0.55% follow HUD Mortgagee Letter 2023-05 for a 30-year term at 3.5% down. Property tax and insurance inputs are directional state references, not a parcel-level bill. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. Sources: HUD Mortgagee Letter 2023-05 (MIP) · HUD Mortgagee Letter 2025-23 (2026 loan limits) · U.S. Census Bureau ACS · NAIC homeowners insurance · CFPB Closing Disclosure
Taxes, insurance and local expenses
What owning actually costs in the United States
Mortgage pricing moves the payment a little. Property tax and insurance move it a lot, and they are entirely local. These figures are built from the 2026 HUD county dataset for the United States and national tax and settlement conventions, reviewed August 23, 2026.
Estimated ownership costs in the United States on a $415,000 home
Cost
Estimate
How it works here
Property tax
$311 / mo
About 0.90% effective on $415,000 — roughly $3,735 a year. Millage is set locally, so verify the parcel's actual bill.
Homeowners insurance
$192 / mo
Directional $2,300 a year for a single-family owner policy in the U.S.. Wind, hail and flood may be separate policies.
FHA annual mortgage insurance
$184 / mo
0.55% of the $400,475 base loan at 3.5% down, 30-year term, per HUD Mortgagee Letter 2023-05.
FHA upfront MIP
$7,008
1.75% of the base loan, normally financed into the $407,483 total loan amount rather than paid in cash.
State transfer / documentary tax
Varies
Transfer, deed, recordation and mortgage taxes are set state by state — several states charge none at all.
Settlement convention
Title/escrow state
A title or escrow company customarily conducts the closing and issues the policy.
The expense buyers here miss most
Property tax and homeowners insurance vary far more between two states than mortgage pricing does — always re-price the escrow on the exact county before you write an offer.
How this affects the FHA file
Taxes and insurance are part of the qualifying payment, so a $503 escrow in your county consumes debt-to-income capacity before a single dollar of principal and interest is counted. Underwriting uses the post-closing figures, not the seller's current bill.
Estimates for general education only — not a quote, rate, APR, pre-approval, offer or commitment to lend. Property tax rates are effective rates derived from U.S. Census Bureau ACS data; actual millage is set by county, city, school and special districts. Insurance figures are directional annual premiums, not quotes. Transfer, deed, recordation and mortgage taxes summarise state-level statutes; counties and municipalities frequently add their own. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Sources: U.S. Census Bureau — ACS property tax data · NAIC Homeowners Insurance Report · CFPB — understanding closing costs
Simply Approved Mortgages Expert Insight
Program commentary · Last reviewed August 23, 2026
The 203(b) works best on move-in-ready property
The standard FHA purchase loan is the right tool when the home already meets minimum property standards. When it does not, we redirect the file to a 203(k) rather than fighting repair conditions that a seller will not complete before closing.
Our recommendation
If the home needs repairs to pass appraisal, price a 203(k) instead.
Ask SAM anything about FHA loans in the United States
SAM is the Simply Approved Mortgages AI assistant, grounded in HUD Handbook 4000.1 and the 2026 HUD county limit file. It answers general FHA questions instantly. A licensed loan officer reviews every scenario before any terms are confirmed.
Hi — I'm SAM. Ask me about FHA loan limits, credit, mortgage insurance, down payment assistance or what an underwriter will need from you. General education only: I don't quote rates, and nothing I say is an offer or commitment to lend.
Ask Simply AI provides general educational information about FHA loan programs. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Where to go next
Continue with the FHA topic that matches where you are, or talk to a licensed loan officer about your own numbers.
Short on cash to close? Ask about the FHA DPA, offered through Simply Approved Mortgages: 2.5%, 3.5%, or 5% of your loan amount toward your down payment and closing costs, structured as a 10-year repayable second lien at your first-mortgage rate + 2%. FICO 580+, primary residence only — it's an option on every loan program on this site.
How it works
Three tiers. Real money toward your home.
2.5% / 3.5% / 5% of the lesser of purchase price or appraised value
Pairs with FHA, Conventional, VA, and USDA first mortgages
10-year repayable second lien — no silent forgivable strings
Not available in: New York, Washington, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. All loans subject to underwriting approval and program guidelines.
Amount calculator & eligibility checker
See how much assistance you may qualify for
Enter a purchase price, pick an assistance tier, and confirm property and residency. Results are illustrative — not a quote or commitment.
Simply Approved Mortgages DPA
DPA amount calculator & eligibility checker
Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.
Estimated DPA
$14,000
3.5% of $400,000
2nd-lien P&I
$174
10-yr · 8.500%
Amount calculator
Lesser of price or appraisal
$400,000
DPA at 3.5%
$14,000
2nd-lien term
10-year fixed, repayable
2nd-lien rate
8.500%
Monthly P&I
$174/mo
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.
Eligibility checker
Documentable qualifying income?
Willing to complete homebuyer education before closing?
Property in NY, WA, USVI, Guam, MP, or AS?
Answer each question above to see your preliminary result.
Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.
Preliminary self-check only — no credit pulled. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.
Our pricing philosophy
Transparency. Simplicity. Consumer Choice.
At Simply Approved Mortgages, we believe borrowers deserve clear information, professional guidance, and access to competitive mortgage solutions.
Our company is built around a straightforward philosophy: provide transparent mortgage guidance, maintain a consistent compensation structure on most transactions, and help borrowers make informed financing decisions based on their individual needs and goals.
For many mortgage transactions, Simply Approved Mortgages typically operates using a lender-paid compensation structure of approximately 1.50%. Actual compensation may vary based on lender requirements, loan program, state regulations, loan amount, and other transaction-specific factors.
We believe transparency helps consumers better understand the mortgage process and make informed decisions when comparing financing options.
Our promise
Mortgage financing should be understandable, transparent, and focused on helping consumers make informed decisions.
Our goal isn't to maximize compensation per transaction. Our goal is to build lifelong client relationships through transparency, service, and competitive mortgage solutions.
Why compensation transparency matters
Understanding all aspects of the financing process
Many borrowers spend significant time comparing interest rates, but may be less familiar with how mortgage companies and loan originators are compensated.
Compensation structures can vary among lenders, mortgage brokers, banks, credit unions, and other mortgage providers. Compensation is only one component of a mortgage transaction and should be evaluated alongside interest rates, APR, lender fees, discount points, closing costs, loan features, and overall loan suitability.
At Simply Approved Mortgages, we believe consumers benefit from understanding all aspects of the financing process before making a decision.
Interactive illustration
See how compensation scales by loan amount
Move the slider to compare a hypothetical 1.50% Simply Approved Mortgages compensation structure with a hypothetical 2.75% used by some other lending options. For educational purposes only.
$400,000
$50,000$2,000,000
Typical market comp at 2.75%$11,000
Simply Approved Mortgages at 1.50%$6,000
Potential closing cost difference
Hypothetical impact on lender compensation only
~$5,000
For illustration only. Figures are hypothetical and not a quote, offer, rate lock, or guarantee of savings. Lender compensation is one component of closing costs; actual loan terms, interest rates, fees, APR, and total costs vary by program, loan amount, credit qualifications, property, occupancy, state, and market conditions.
Illustrative compensation comparison
Comparing a hypothetical 1.50% to a hypothetical 2.75%
The example below compares a hypothetical 1.50% compensation structure used by Simply Approved Mortgages to a hypothetical 2.75% structure used by some other lending options, solely for educational purposes.
Loan Amount
Simply Approved Mortgages (1.50%)
Other lending options (2.75%)
Difference
$250,000
$3,750
$6,875
$3,125
$350,000
$5,250
$9,625
$4,375
$500,000
$7,500
$13,750
$6,250
$750,000
$11,250
$20,625
$9,375
$1,000,000
$15,000
$27,500
$12,500
These examples are illustrative only and are intended to demonstrate how different compensation percentages may produce different compensation amounts based on loan size.
These examples do not represent borrower fees, interest rates, APR, closing costs, loan terms, pricing, or savings, and should not be interpreted as a guarantee that any borrower will receive lower costs or better loan terms.
Our commitment to borrowers
Our goal is to provide
Professional mortgage guidance
Transparent communication throughout the loan process
Access to a broad range of mortgage programs
Competitive financing options based on borrower qualifications
A streamlined application and approval experience
Support for homebuyers, homeowners, and real estate investors
A team-focused approach
Support for every type of borrower
Whether you're purchasing a home, refinancing an existing mortgage, consolidating debt, or financing an investment property, our team is committed to helping you evaluate available options and make informed decisions.
Compare more than just the interest rate
When evaluating mortgage options, borrowers should consider the complete financing package
•Interest Rate
•Annual Percentage Rate (APR)
•Lender Fees
•Discount Points
•Closing Costs
•Loan Features and Flexibility
•Prepayment Terms
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The most appropriate mortgage solution depends on each borrower's individual financial circumstances, objectives, qualifications, and preferences.
Important Disclosure: Simply Approved Mortgages LLC typically utilizes a lender-paid compensation structure of approximately 1.50% on many mortgage transactions; however, compensation may vary based on lender requirements, loan program, state law, loan amount, borrower qualifications, and other transaction-specific factors. Compensation is only one component of mortgage pricing and does not, by itself, determine interest rates, APR, lender fees, closing costs, loan terms, or overall borrower costs. The information provided on this page is for general educational and informational purposes only and should not be construed as mortgage advice, a commitment to lend, an offer to extend credit, a rate quote, a loan approval, or a guarantee of savings. All mortgage loans are subject to credit approval, underwriting requirements, property approval, and program eligibility guidelines. Borrowers should carefully review all disclosures, including the Loan Estimate and Closing Disclosure, before proceeding with any mortgage transaction. Simply Approved Mortgages LLC • NMLS #2620881 • Equal Housing Opportunity.
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MIP is the FHA's mortgage insurance. There's an upfront piece and an annual piece. Here's the math on what it actually costs.
November 28, 2025 · 8 min read
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