FHA's core requirements are a 3.5% minimum down payment and flexible debt-to-income limits. The biggest downside is the mortgage insurance. The requirements: - 3.5% down with a credit score of 580 or above. Scores from 500 to 579 require 10% down, and few lenders work that range. - On files with an automated underwriting approval, FHA can allow a housing ratio up to 46.99% and total debt-to-income up to 56.99%. Those are hard ceilings, they apply only to automated-approval files, and the top of the range depends on the full picture, so do not budget around it. - Credit treatment is generally more forgiving than conventional. Confirm current FHA guidelines, since they are revised over time. The downsides: - The upfront mortgage insurance premium, 1.75% of the loan. Most borrowers finance it on top of the balance (paying cash at closing is allowed), which means a 3.5% down payment leaves a bit less than that in starting equity. - The annual mortgage insurance premium. On the minimum down payment it runs for the life of the loan rather than falling off at an equity threshold, and only refinancing out of FHA removes it. The premium rate changes periodically, so confirm the current factor. Most borrowers refinance or move before life-of-loan insurance becomes a real burden, but it is a genuine consideration. Historically, someone with strong credit, say the mid-700s and up, putting 10% or more down leans conventional, because well-qualified conventional borrowers get cheaper mortgage insurance with no upfront premium. But once you put the two programs side by side, plenty of buyers with smaller down payments choose FHA anyway, because the lower payment and larger qualifying amount outweigh the upfront cost. Work with someone comfortable running both. A loan officer who dismisses FHA out of hand is showing their own bias, since they earn the same regardless of program. Running that exact comparison on your numbers is what we do in a free Roadmap conversation.