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UpdatedAugust 22, 2026ReviewedAugust 23, 2026Where our FHA figures come from
Loan officer reviewing FHA qualification documents with a couple in an office
FHA Loan Requirements

Exactly what you need to qualify for an FHA loan in 2026.

Every credit, income, debt, property, and documentation rule — pulled directly from HUD Handbook 4000.1, the FHA's official policy manual.

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3.5%
Min. down payment
580
Min. FICO score
$1,249,125
2026 high-cost ceiling
Quick answer

What are the FHA loan requirements in 2026?

To qualify for an FHA loan in 2026 you need a 580 FICO for 3.5% down (500–579 with 10% down), a debt-to-income ratio generally under 43% — up to 56.9% with compensating factors — two years of verifiable income, a clean CAIVRS check, and a property that passes FHA minimum property standards as your primary residence.

What this means for your mortgage

If you clear the credit, income, and property checks below, an FHA approval is realistic even after a rough credit year.

Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1

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TL;DR

FHA requirements: key takeaways

  • 580 FICO for 3.5% down; 500–579 requires 10% down
  • DTI target is 43%, with approvals to 56.9% when compensating factors exist
  • Two-year employment history, gaps explained in writing
  • Property must be owner-occupied and meet HUD minimum property standards
  • Chapter 7 bankruptcy: two years; foreclosure: three years
  • No federal debt delinquency (CAIVRS must be clear)

Verified against HUD Handbook 4000.1 Update 18 — August 12, 2026

Reviewed by the Simply Approved Mortgages underwriting desk — Licensed mortgage originators (NMLS) — Colorado & Florida. Every rule on this page was re-checked against the August 12, 2026 handbook release, including the new employment-verification definitions below.

FHA employment verification in 2026: written VOE, electronic VOE, and reverification

HUD Handbook 4000.1 Update 18 (published August 12, 2026) defines three distinct employment verifications, and they apply the same way whether your file is scored by the TOTAL Scorecard or manually underwritten. Here is the direct answer to each, with HUD's rule kept strictly separate from what individual lenders add on top.

Written verification of employment (written VOE)

A written VOE is a form your employer completes and returns directly to the lender, confirming your job, dates of employment, pay, and the likelihood that the job continues. It is a direct employer-to-lender document — you never handle it — and it can stand in place of pay stubs and W-2s when the lender also obtains one current pay stub.

HUD rule (Handbook 4000.1)
  • The document must travel directly between the employer and the lender, with no borrower handling at any point.
  • It must show dates of employment, current position, and the income used to qualify.
  • When a written VOE replaces pay stubs and W-2s, the lender still obtains the most recent pay stub.
  • The same definition applies whether the file is scored by TOTAL Scorecard or manually underwritten.
Lender overlay (not a HUD rule)

Many lenders still collect 30 days of pay stubs and two years of W-2s alongside the written VOE rather than in place of them, because investors buying the loan ask for both.

Electronic verification of employment (electronic VOE)

An electronic VOE is employment and income data pulled from a third-party verification vendor that sources it from payroll records. Update 18 defines it as its own verification type, so a compliant vendor report can document employment and income without the employer filling out a paper form.

HUD rule (Handbook 4000.1)
  • The data must come from a third-party verification service that sources it from the employer's payroll records.
  • The report must identify the vendor, the date accessed, and the period covered.
  • Electronic VOE is recognized under both TOTAL Scorecard and manual underwriting.
  • The lender remains responsible for the accuracy and integrity of the data it uses to qualify you.
Lender overlay (not a HUD rule)

Some lenders only accept specific vendors, and some will not use an electronic VOE at all for self-employed, commission, or gig income — expect to document those the traditional way.

Reverification of employment

Reverification is the final check before funding that confirms you are still employed. Update 18 defines it as a distinct step from the original verification: the lender re-confirms your employment close to closing, by phone, electronically, or in writing, and documents who confirmed it and when.

HUD rule (Handbook 4000.1)
  • Reverification confirms employment continues as of a date close to closing — it is not a re-underwrite of your income.
  • The lender documents the source, the person or system contacted, and the date of the contact.
  • It applies to both TOTAL Scorecard and manually underwritten files.
  • Self-employed borrowers are reverified by confirming the business remains in operation.
Lender overlay (not a HUD rule)

Most lenders complete reverification within 10 calendar days of the note date and repeat it if closing is delayed — which is why changing jobs, going unpaid-leave, or resigning before funding can stop a closing outright.

Update 18 also incorporated servicing and foreclosure-timeline changes that do not affect purchase or refinance origination. Overlays vary by lender and by file. Nothing here is a quote, rate lock, offer, or commitment to lend.

Credit score

  • FICO 580 or higher: 3.5% minimum down payment
  • FICO 500–579: 10% minimum down payment
  • FICO below 500: not FHA-eligible
  • FHA uses the middle of three credit-bureau scores; lower score on a joint file
  • Most lenders enforce overlays at 580–620 minimum

Income & employment

  • Two-year work history in the same line of work (gaps must be explained)
  • Most recent 30 days of pay stubs
  • Two years W-2s and federal tax returns (self-employed: full Schedule C / K-1)
  • Two months bank statements showing assets and any large deposits
  • A written VOE, an electronic VOE from a payroll-sourced vendor, or pay stubs plus W-2s — all three are accepted under Update 18
  • Reverification of employment close to closing (typically within 10 days of the note date)

Debt-to-income ratio

  • Standard cap: 43% total DTI (housing + all other debts ÷ gross income)
  • Up to 50% with automated approval and compensating factors
  • Up to 57% with manual underwriting and strong compensating factors
  • Front-end DTI (housing only) typically capped at 31–40%

Down payment & funds

  • 3.5% minimum from your own funds, a gift, a grant, or a down-payment assistance program
  • Gifted funds require a signed gift letter and donor's source of funds
  • Cash reserves: 0 months required for 1–2 units, 3 months for 3–4 units
  • Seller can pay up to 6% of the sale price in closing costs and prepaids

Property requirements

  • Owner-occupied 1-to-4 unit primary residence
  • Must pass an FHA appraisal by a HUD-roster appraiser
  • Must meet HUD Minimum Property Standards (safety, structure, security)
  • Pre-1978 homes require lead-based paint disclosure and possibly remediation
  • Loan amount must be within your county's 2026 FHA loan limit

Mortgage insurance

  • Upfront MIP: 1.75% of base loan amount, financed into the loan
  • Annual MIP: typically 0.55% on a 30-year, 3.5%-down loan
  • MIP lasts the life of the loan when LTV > 90% at origination
  • MIP drops off after 11 years if LTV ≤ 90% at origination

Bankruptcy & foreclosure

  • Chapter 7 bankruptcy: 2 years from discharge with re-established credit
  • Chapter 13 bankruptcy: 1 year of on-time payments + court approval (or 2 years post-discharge)
  • Foreclosure: 3 years from completion date
  • Short sale or deed-in-lieu: 3 years from sale date
  • Federal debts (IRS, student loans in default): must be current or in a payment plan

Maximum FHA loan-to-value by transaction

How much you can borrow depends on what you are doing. 'Total LTV' includes the 1.75% upfront mortgage insurance premium once it is financed into the loan — which is what almost every FHA borrower does.

TransactionUnitsBase LTVTotal LTV w/ financed UFMIP
Purchase

The standard 3.5% down FHA purchase. Total LTV rises to 98.25% once the 1.75% upfront MIP is financed into the loan.

1–4 units96.50%98.25%
HUD REO $100 Down / Good Neighbor Next Door (no repairs financed)

On eligible HUD-owned homes the entire down payment is $100. Teachers, firefighters, law enforcement, and EMTs may also qualify under Good Neighbor Next Door.

1 unit100% minus $100100%
HUD REO $100 Down / Good Neighbor Next Door (repairs financed)

Total LTV may reach 110% when eligible repair costs are rolled in.

1 unit100% minus $100110%
203(h) mortgage insurance for disaster victims

True zero-down FHA financing for borrowers whose residence was destroyed in a Presidentially Declared Major Disaster Area.

1 unit100%101.75%
Rate/term refinance & simple refinance

Capped at 85% LTV if you have occupied the property as your principal residence for fewer than 12 months before the case number is assigned.

1–4 units97.75%99.50%
Cash-out refinance

FHA cash-out has been limited to 80% LTV since 2019. You must keep at least 20% equity.

1–4 units80%81.75%

Terms available: 10, 15, 20, 25, and 30-year fixed terms, plus odd terms on fixed-rate transactions. 30-year only for adjustable-rate transactions.

Price a real FHA scenario

See live wholesale FHA pricing for your exact scenario — Florida and Colorado primary residences. Provider pricing only, never an estimate. Not a lock, approval or commitment to lend.

Open the FHA pricing tool

HUD's minimum vs. what lenders actually require

HUD sets the floor. Individual lenders add their own requirements — called overlays — on top of it. This is the single biggest reason borrowers get declined after being told they 'meet FHA guidelines.' Here is where the two diverge.

Credit score

HUD minimum

580 for 3.5% down; 500–579 with 10% down

Typical lender rule

Most lenders will not go below 580 at all, and files under 640 trigger layered-risk review with tighter reserve, DTI, and payment-shock requirements. Down payment assistance programs generally set their own floor at 580 or 640.

Borrowers with no credit score

HUD minimum

Non-traditional credit permitted with documented alternative payment history

Typical lender rule

Allowed on purchases only, manually underwritten, and typically capped at 31%/43% front-end/back-end ratios. If some borrowers have scores and others do not, the maximum LTV is set by the scored borrowers.

Debt-to-income

HUD minimum

Up to 56.99% back-end with an automated approval and compensating factors

Typical lender rule

An automated Approve/Eligible generally governs. Manual underwrites fall back to 31%/43% unless documented compensating factors support more, and scores below 640 frequently cap out well under the HUD ceiling.

Payment shock

HUD minimum

Considered as a compensating factor under manual underwriting

Typical lender rule

With an automated approval, payment shock usually does not apply. Manually underwritten files between 640 and 679 are often held to 100% payment shock — waived when the housing ratio is 31% or less — and assistance programs may impose a hard cap such as 225%.

Subordinate financing

HUD minimum

Eligible subordinate liens may remain if resubordinated to the FHA first mortgage

Typical lender rule

Assistance seconds commonly cannot be subordinated during the first 36 months, so refinancing early means paying the second off. UCC liens on title must be counted in CLTV and the associated debt in your ratios.

Manual underwriting

HUD minimum

Permitted per Handbook 4000.1

Typical lender rule

Available at most lenders and on most assistance programs, but expect reserve requirements, stricter ratios, and full documentation. Some grant programs restrict it entirely.

Overlays vary by lender and by file, and change without notice. Nothing here is a quote, rate lock, offer, or commitment to lend. Final eligibility is determined only after a full application and underwriting review.

Ready to see what you qualify for?

Talk with a licensed FHA broker about your scenario. Licensed in Florida and Colorado.

Start My ApprovalCall 877-813-7219

Is your employment ready to verify under Update 18?

This is a good fit if…

  • You have been in the same line of work two years, with any gaps explainable in writing
  • Your employer responds to verification requests, or your payroll is on a mainstream vendor an electronic VOE can read
  • Your pay structure will look the same at reverification as it did at application
  • You are salaried or hourly with a steady base — the cleanest file type to verify

Consider another path if…

  • You are planning a job change, resignation, or unpaid leave before closing — wait until after funding
  • Your income is commission, bonus, or gig-based, where lenders usually require traditional documentation instead of an electronic VOE
  • You are self-employed and the business would not verify as operating at reverification
  • Your employer refuses third-party verification requests and cannot return a written VOE

Documents you need to prove FHA eligibility

Underwriting verifies every claim on your application with paper. Here is what proves each FHA rule.

Proving your income (the 2-year rule)

  • Two years of W-2s plus 30 days of pay stubs for wage earners
  • Two years of personal and business tax returns with all schedules if self-employed
  • A written VOE returned employer-to-lender, or an electronic VOE from a payroll-sourced vendor (both defined in Handbook 4000.1 Update 18)
  • Reverification of employment close to closing — a separate step from the original verification
  • Award letters and 1099s for Social Security, pension, or disability income you want counted

Proving funds and sourcing large deposits

  • Two months of every asset statement, all pages, including blank ones
  • Letter of explanation and paper trail for any deposit above 1% of the price
  • Signed gift letter naming the donor, relationship, and that no repayment is expected
  • Retirement account terms of withdrawal if you're using 401(k) funds

Clearing credit and federal-debt checks

  • Written explanations for every late payment, collection, and recent inquiry
  • Bankruptcy discharge papers or the foreclosure deed transfer date
  • Proof any delinquent federal debt flagged by CAIVRS has been resolved
  • Payment plan agreements for IRS or student loan arrangements

Satisfying property conditions

  • FHA appraisal with any required repairs completed and re-inspected
  • Termite or well/septic certification when the appraiser calls for it
  • Condo project approval on HUD's approved list, or a single-unit approval
  • Flood certification and flood insurance if the home sits in a mapped zone

Quick answers

What is the highest DTI FHA allows?
Automated approvals have reached 56.9% back-end DTI; manual underwrites are typically capped near 40/50% unless strong reserves exist.
Do I need two years on the same job?
No — two years of history in the same line of work is enough, and job changes with equal or higher pay are fine.
Can non-occupant co-borrowers help me qualify?
Yes. FHA allows a family-member co-borrower who doesn't live in the home, and their income counts toward the ratios.
What is a written verification of employment on an FHA loan?
It is a form your employer completes and returns directly to the lender showing your dates of employment, position, and income. You never touch it. HUD Handbook 4000.1 Update 18, published August 12, 2026, defines it as its own verification type, and it can replace pay stubs and W-2s when the lender also has your most recent pay stub.
Does FHA accept an electronic verification of employment?
Yes. Update 18 recognizes an electronic VOE — employment and income data pulled from a third-party vendor sourcing your employer's payroll records — under both TOTAL Scorecard and manual underwriting. The report must show the vendor, the access date, and the period covered. Individual lenders may restrict which vendors they accept, and many will not use one for self-employed or commission income.
What is reverification of employment and when does it happen?
Reverification is a separate final check confirming you are still employed shortly before funding. It is not a re-underwrite of your income — the lender simply re-confirms employment by phone, electronically, or in writing and logs who confirmed it and when. Most lenders do it within 10 days of the note date, which is why changing jobs before closing can stop the loan.
Do the Update 18 employment rules apply to manual underwriting?
Yes. The written VOE, electronic VOE, and reverification definitions apply identically whether your file is scored by the TOTAL Scorecard or manually underwritten. What changes with manual underwriting is the level of compensating factors required, not the way employment is verified.
Do I need two years at the same employer?
No. FHA looks for a two-year employment history, which can span employers, with an explanation for gaps and evidence of stability.
Does a recent job change disqualify me?
Not by itself. A move within the same field with equal or better pay is common; an offer letter and first pay stub are usually required.
What credit history do I need if I have no score?
FHA permits nontraditional credit references — rent, utilities, insurance — under manual underwriting when there is no usable score.
Are there reserve requirements?
One- and two-unit purchases often need none on an approved automated finding; three- and four-unit purchases require three months of reserves.
Can I qualify with alimony or child support income?
Yes, when it is documented, likely to continue for the required period, and supported by a court order and receipt history.
Does FHA require first-time buyer status?
No. FHA is available to repeat buyers as long as occupancy and other requirements are met.
Are non-U.S. citizens eligible?
Lawful permanent and certain non-permanent residents may be eligible with documented status and work authorization; non-residents are not.
What property types are ineligible?
Investment properties, second homes, condotels, most commercial-use properties, and homes that cannot meet HUD minimum property requirements.
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
Get my FHA estimate

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

Weighing it up

Pros and cons of FHA financing

The trade-offs below are specific to FHA financing. Reviewed August 23, 2026 against HUD Handbook 4000.1 and the current HUD county loan limit file.

What works in your favor

  • 3.5% down from a 580 FICO, with 100% of the down payment giftable.
  • Seller contributions of up to 6% of the sale price toward closing costs.
  • No income caps, and higher DTI is possible with documented compensating factors.

What to plan around

  • Annual mortgage insurance for the life of the loan at 3.5% down.
  • County loan limits cap the financed amount, not the purchase price.
  • HUD minimum property standards apply at appraisal.
Worked example

The FHA numbers behind this page

A $425,000 example shows the cash and loan structure FHA produces before pricing is added.

The FHA numbers behind this page
Purchase price$425,000
FHA down payment at 3.5%$14,875
Base loan amount$410,125
Upfront MIP at 1.75%, financed$7,177
Conventional 20% down for comparison$85,000

Illustration only — not a quote, rate lock, offer or commitment to lend. Subject to lender underwriting and approval.

Income documentation

Self-employed vs. W-2 employed: what it means for your FHA loan

Income documentation is where most FHA files slow down, and it depends on how you are paid. 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
ItemW-2 employedSelf-employed
History requiredTwo-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 calculatedBase 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 file30 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 closingThe 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 delayUnexplained 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 suggestGet 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.

$
%

FHA minimum is 3.5% at 580+ credit.

%

Your assumption — not a quoted rate.

yrs
%
$
Estimated total monthly payment
$3,262
Principal & interest
$2,576
FHA annual MIP
$184
Property tax
$311
Homeowners insurance
$192
Down payment
$14,525
Loan amount incl. financed UFMIP
$407,483
See Today's Rates

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
CostEstimateHow it works here
Property tax$311 / moAbout 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 / moDirectional $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 / mo0.55% of the $400,475 base loan at 3.5% down, 30-year term, per HUD Mortgagee Letter 2023-05.
FHA upfront MIP$7,0081.75% of the base loan, normally financed into the $407,483 total loan amount rather than paid in cash.
State transfer / documentary taxVariesTransfer, deed, recordation and mortgage taxes are set state by state — several states charge none at all.
Settlement conventionTitle/escrow stateA 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
Underwriting commentary · Last reviewed August 23, 2026

Minimums are the floor, not the approval

FHA's published minimums — 580 FICO with 3.5% down, documented income, and a two-year employment history — get a file eligible. What actually clears underwriting is the full picture: payment history over the last 12 months, reserves, and how the debt ratio behaves after the new payment. We review those items up front so nothing surprises the file in underwriting.

Our recommendation

Meet the minimums, then strengthen the compensating factors around them.

Simply Approved Mortgages · licensed mortgage broker · NMLS #2620881 · Equal Housing Opportunity
Ask Simply AI

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.

General information only — not advice, a quote, or an offer of credit.

Popular on this page

Talk to a licensed loan officer 877-813-7219

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.

How FHA loans work

What FHA insurance is and who it fits.

FHA requirements

Credit, income, DTI and property rules.

FHA credit score rules

580 vs 500–579 and what they change.

Down payment & assistance

3.5% minimum, gift funds and DPA options.

Mortgage insurance (MIP)

Upfront and annual MIP, and how long it lasts.

FHA loan limits

County-by-county HUD maximums.

FHA closing costs

What you pay and what a seller can cover.

FHA loan programs

203(b), 203(k), streamline, cash-out and more.

FHA calculators

Payment, affordability, MIP and break-even tools.

First-time buyer guide

Step-by-step from budget to closing.

Start My Approval Contact a licensed loan officer Submitting a request is not an application, approval or commitment to lend.
Down Payment Assistance

The FHA DPA Program

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
  • Available to FICO 580+ primary-residence buyers
Full DPA program details
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

Assistance tier
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.

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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 AmountSimply 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
  • •Product Eligibility Requirements
  • •Customer Service and Support

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.

Ready when you are

Get pre-qualified in minutes — no obligation.

Talk to a licensed Simply Approved Mortgages loan officer. We'll review your goals, walk through FHA, Conventional, VA, USDA, and DPA options, and give you straight answers — same day.

Start My ApprovalSee Today's Rates

Simply Approved Mortgages • NMLS #2620881 • Licensed in Colorado and Florida

Quick pre-qualification

Share a few details and a licensed loan officer will follow up within one business day. No obligation.

1
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Simply Approved Mortgages LLC arranges residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.

Step 1 of 2 — takes about 30 seconds. Step 2 is optional detail you can skip anytime by calling us.

Simply Approved Mortgages LLC | NMLS #2620881 — a mortgage broker, not a direct lender. Submitting this form is an inquiry only; it is not an application, quote, pre-approval, approval or commitment to lend. All loans are subject to lender underwriting and approval. Equal Housing Opportunity. See our Privacy Notice.

Credit & pre-approval

Why we pull credit for your FHA pre-approval

Every FHA file needs a tri-merge credit report so we can verify your identity, confirm your FICO tier against FHA's 580 / 500 thresholds, and price your rate and mortgage insurance accurately. Cleaner credit typically unlocks a better rate and a stronger pre-approval letter.

Pay for your credit report — SmartPay

Simply Approved Mortgages uses SmartPay to securely collect the credit report fee for your FHA pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks your tri-merge report (Equifax, Experian, TransUnion) so your loan officer can price your file.

  • Secure, PCI-compliant SmartPay checkout
  • Required for a formal FHA pre-approval decision
  • Guided process — your loan officer walks you through each step
Pay for credit report securely

You'll be redirected to our secure SmartPay checkout.

Check your credit first — $1 trial at MyITINCredit

Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores, plus ongoing monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.

  • See all 3 bureau reports & scores before your lender does
  • Ongoing monitoring alerts you to new accounts or score changes
  • Fix errors early — a higher FICO can lower your FHA rate
Start $1 / 15-day trial

You'll be redirected to myitincredit.com. Third-party service — terms apply.

Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages does not profit from the credit pull. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.

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