FHA loan
Flexible credit guidelines and 3.5% down
Insured by the Federal Housing Administration, FHA loans make ownership reachable with lower scores and smaller savings.
FHA loan: how it works
FHA loans are insured by the Federal Housing Administration, which lets lenders approve borrowers who might not fit conventional guidelines. With a 580 credit score you can put down 3.5%, and gifts from family can cover the entire down payment.
The trade-off is mortgage insurance. FHA charges an upfront premium of 1.75% (usually financed into the loan) plus an annual premium paid monthly. With less than 10% down, that annual premium stays for the life of the loan, which is why many borrowers refinance into a conventional loan once they build equity.
FHA also allows higher debt-to-income ratios and is forgiving of past credit events, making it a popular choice for teachers, nurses and first responders buying in Dorchester, Quincy, Lynn and Worcester.
What's included with Harborview
- 30-year and 15-year fixed terms
- 100% gifted down payment allowed
- Non-occupant co-borrowers can help you qualify
- Condos on the FHA-approved list
- 2 to 4 unit homes with 3.5% down
- FHA 203(k) renovation financing available
The process, step by step
Your loan officer stays with you the whole way, and you get status updates by text at every milestone.
Credit review
We look at your full picture, including rent and utility history, not just the score.
Pre-approval letter
A written approval with a clear price ceiling for your home search.
FHA appraisal
An FHA-approved appraiser confirms value and basic safety standards.
Close and move in
Most FHA purchases close in 25 to 30 days from contract.
Benefits worth knowing
Lower score, same rate tiers
FHA pricing varies less by credit score than conventional pricing does.
Assumable loan
A future buyer may be able to take over your rate, which can help when you sell.
Room for debt
Debt-to-income ratios up to 57% can be approved with strong compensating factors.
Qualifying guidelines
General guidelines only. Exceptions and overlays apply, and your loan officer will review your situation.
| Factor | Guideline |
|---|---|
| Credit score | 580 for 3.5% down; 500 to 579 needs 10% down |
| Debt-to-income | Generally 43%, up to 57% with automated approval |
| Occupancy | Must be your primary residence within 60 days |
| Property | Must meet HUD minimum property standards |
| Waiting period | 2 years after bankruptcy, 3 years after foreclosure |
Related programs
Buy a homeConventional loan
Fannie Mae and Freddie Mac loans with as little as 3% down and mortgage insurance that drops off as you build equity.
Learn more
Buy a homeFirst-time buyer programs
MassHousing, ONE Mortgage and down payment assistance options, plus a loan officer who walks you through every step.
Learn more
Buy a homeUSDA loan
USDA Rural Development loans help moderate-income buyers purchase in eligible towns across central and western Massachusetts.
Learn more
FHA questions
More answers in our full FAQ.
With 10% or more down it ends after 11 years. With less than 10% down it stays for the life of the loan, so many borrowers refinance to conventional later.
FHA rates are often slightly lower, but mortgage insurance raises the total monthly cost. We compare both on the same sheet so you can see the full payment.
Yes, if the building is FHA approved or qualifies for a single-unit approval. We check the condo's status before you make an offer.
Ready to see your FHA numbers?
A pre-approval takes about 10 minutes online and does not affect your credit score. A local loan officer follows up the same day.
- Soft credit check
- 24-day average close
- 4.9 from 1,284 reviews
