Flexible financing for first-time buyers and those with lower credit scores. Down payments as low as 3.5%.
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FHA loans are insured by the Federal Housing Administration, making them accessible to borrowers who might not qualify for conventional financing.
Eligibility Guide
Credit, gift funds, employment, student loans, DTI, and property standards — here are the key factors that determine whether you qualify for an FHA loan with The 2 Mortgage Guys.
Quick FHA Snapshot
FHA loans are designed for owner-occupants buying a primary residence — including first-time buyers and buyers with thinner credit or smaller down payments. Borrowers generally need a valid Social Security number, lawful residency, steady income that can support the payment, and a property that meets FHA standards. We review your full file, not just a score, to see whether FHA, conventional, or another program is the better fit.
FHA guidelines allow scores as low as 580 for the popular 3.5% down option, and 500–579 with at least 10% down. Lender overlays can differ, so we look at payment history, recent credit events, and compensating factors before recommending a path. If your score is rebuilding, we can often map a timeline to qualify.
FHA allows 100% of your down payment and closing costs to come from eligible gift funds. Common sources include family members, employers, labor unions, and qualified nonprofit or government assistance programs. A gift letter and proof of transfer are required — we walk you through the paperwork so funds clear underwriting cleanly.
Collections and charge-offs do not automatically disqualify an FHA borrower. Medical collections are often treated more flexibly, while non-medical collections may need payment, a payment plan, or documented explanation depending on the amount and underwriting path. We help you prioritize what to resolve before you apply so surprises do not stall closing.
Stable income matters more than a perfect job title. Most files show roughly two years of employment history, but job changes, gaps, and recent raises can still work with clear documentation. W-2 employees, recent graduates, and self-employed borrowers can all qualify when income is verifiable and expected to continue.
Student loan payments are factored into your debt-to-income ratio. When a payment is reported on the credit report, that amount is typically used; if no payment is shown, FHA often calculates a payment based on a percentage of the outstanding balance. Income-driven repayment plans can help — we run the numbers both ways so you know where you stand.
When automated underwriting returns a refer or your profile needs a closer look, FHA manual underwriting can still get you approved. Compensating factors — such as cash reserves, a lower payment ratio, residual income, or strong housing history — can offset thinner credit or higher ratios. Ryan and Steve specialize in structuring these files so borrowers still have a clear path to approval.
Homes financed with FHA must meet Minimum Property Requirements focused on safety, soundness, and security. An FHA appraisal flags issues like roof condition, utilities, peeling paint on older homes, and access. Many repairs can be completed before closing or addressed with repair escrows when allowed — we coordinate with your realtor so the property stays on track.
Your debt-to-income (DTI) ratio compares monthly debts to gross income and is a core FHA qualifying factor. Automated approvals often allow higher ratios than conventional loans, and with strong compensating factors some files can stretch toward the mid-40s to about 50%. We calculate housing and total DTI early so you know whether to pay down debt, document extra income, or choose a different purchase price.
Most FHA purchases need at least 3.5% down with a 580+ score (or 10% down in the 500–579 range), and the home must be your primary residence. You generally move in within 60 days of closing. Multi-unit (2–4) properties can work if you occupy one unit. We confirm occupancy intent, gift-fund sourcing, and seller credits so your down payment and closing-cost stack meets FHA rules.
See what your monthly payment could look like with an FHA loan. Includes principal, interest, taxes, insurance, and FHA mortgage insurance premiums.
$10,500 down
Estimated Monthly Payment
$0 /mo
Estimates for informational purposes only. Actual payment depends on final rate, taxes, insurance, and MIP. Not a commitment to lend.
Renovation Financing
Found a fixer-upper? Buy and renovate with one FHA loan — as little as 3.5% down. Standard for major work or Limited Streamline for updates up to $75,000.
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Mortgage Knowledge Center
Straight answers to the questions buyers ask us most — from down payments and MIP to credit, multi-unit properties, and refinancing.
2MG Daily
Recent articles from our blog covering FHA loans, requirements, and homebuying tips.
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