Low down payment requirement and easier qualification guidelines

FHA Quick Facts

3.5% Down

Minimum Down Payment


Minimum Credit Score


Max Debt-to-Income Ratio

What is an FHA loan?

FHA-Insured Loans offer many benefits and a level of security that you won’t find in other loans. While these loans are funded by Directions Home Loan, the Federal Housing Administration (FHA) insures these mortgages so we’re able to offer you a better deal. With flexible qualification guidelines, these loans are particularly designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down.

What are the benefits of an FHA-Insured Loan?

FHA-Insured Loans offer the following features:

  • Low down payments (as low as 3.5% of the purchase price).
  • Fixed-Rate and Adjustable-Rate Mortgages available.
  • 100% gift funds acceptable for down payment and closing costs.
  • No prepayment penalty.
  • Flexible qualification guidelines.

Who may benefit from an FHA-Insured Loan?

FHA-Insured Loans may be of particular benefit to buyers who:

  • Are buying their first home.
  • Don’t have a lot of money to put down.
  • Don’t have perfect credit and are worried about qualifying for a loan.
  • Want to keep their monthly payments as low as possible and/or are concerned about their monthly payments going up.
  • Want to refinance a high-cost mortgage.
  • Are looking to finance one- to four-unit structures or approved condominiums.

Sample Loan Scenarios:

Loan Scenario: $200,000 loan amount; 3.5% down payment; $1,363.50/month (PITI); 30-year fixed 4.750% interest rate; 4.937% APR.

Loan Scenario: $200,000 loan amount; 10% down payment; $1,330.59/month (PITI); 30-year fixed 5.25% interest rate; 6.183% APR.

Meet Your Mortgage Expert for
FHA Home Loans

Yvonne Godina

| NMLS #312632


Is an FHA Loan right for you?

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