FHA Loans
FHA loans: built for first-time buyers.
Government-backed, lower barrier to entry. If your credit isn't perfect or your savings are tight, FHA is usually the fastest way into a home.
Who it's for
- Credit scores as low as 580 for 3.5% down, 500–579 with 10% down
- First-time and repeat buyers both qualify
- Higher debt-to-income tolerance than conventional
The tradeoff
FHA loans require mortgage insurance for the life of the loan in most cases. That's the cost of the lower entry bar. We'll show you the real monthly number, insurance included, so there's no surprise at closing.
What you'll need
Steady employment history, a credit score in range, and enough for the minimum down payment plus closing costs.
FHA mortgage insurance, in plain terms
Every FHA loan carries two forms of mortgage insurance: an upfront premium financed into the loan amount, and an annual premium collected monthly. In most cases with the minimum down payment, the annual premium stays for the life of the loan. That is the honest tradeoff for qualifying with a lower credit score and a 3.5 percent down payment, and for many buyers it is clearly worth it, because the alternative is not a cheaper loan but no loan at all this year.
The premium is not permanent in practice. Once your credit and equity improve, refinancing into a conventional loan removes FHA insurance entirely. Plenty of buyers use FHA to get in the door and refinance a few years later. Our refinance timing tool will tell you when that math turns in your favor.
FHA property and appraisal standards
FHA appraisals check condition as well as value. The appraiser looks for peeling paint on older homes, missing handrails, roof life remaining, functioning mechanical systems, and safe access to water and heat. Homes in Delaware and Pennsylvania's older housing stock occasionally need small repairs before closing, which is manageable when everyone knows about it early. If the property needs more than cosmetic work, an FHA 203(k) renovation loan or a construction loan may be the better structure.
Getting your down payment together
FHA allows the entire down payment to come from a documented gift from family, and it works alongside Delaware and Pennsylvania down payment assistance programs. Sellers can also contribute toward closing costs within program limits, which often matters more than the down payment itself. If you are buying your first home, start with our first-time homebuyer guide, then run your numbers on the payment calculator.
Frequently asked
What credit score do I need for an FHA loan?+
A score of 580 or higher qualifies for the 3.5% down payment option. Scores between 500 and 579 may still qualify with 10% down.
How much is the down payment on an FHA loan?+
3.5% of the purchase price with a credit score of 580 or higher. Down payment funds can come from savings, gifts, or eligible assistance programs.
Do FHA loans require mortgage insurance?+
Yes. FHA loans require mortgage insurance for the life of the loan in most cases. That's the tradeoff for the lower credit and down payment thresholds.
Can I use an FHA loan more than once?+
Generally yes, though you can typically only have one FHA loan at a time. We'll walk through your specific situation.
Where we lend
Delaware and Pennsylvania are home base. Beyond that, we work with borrowers across the states below. These loans are available throughout our full lending footprint.
- Delaware
- Pennsylvania
- Alaska
- Alabama
- Arkansas
- Colorado
- Connecticut
- District of Columbia
- Florida
- Georgia
- Hawaii
- Iowa
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Maryland
- Maine
- Missouri
- Mississippi
- Montana
- North Carolina
- Nebraska
- New Hampshire
- New Jersey
- New Mexico
- Ohio
- Oklahoma
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- West Virginia
- Wyoming
Contact
Talk to Our Team Directly
No call centers, no runaround. Reach out and get real answers on what you qualify for before you fall in love with a house.
Phone
302-600-3197Email
info@orangemtg.comHours
Mon-Fri 9am-6pm · Sat by appointment
Office
1301 N Harrison St, Suite 104
Wilmington, DE 19806Serving Delaware, Pennsylvania, and 37 more states
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