FHA loans
A government-insured loan with flexible credit rules and 3.5% down. The right tool for some buyers, and a more expensive one than it looks for others.
Who it's for
Buyers whose credit has some history, whose debt-to-income ratio is on the higher side, or who don't have 5% saved. FHA is also a strong option for buyers with a recent bankruptcy or foreclosure that's past the waiting period.
How it works
The Federal Housing Administration insures the loan, which lets the lender accept more risk on credit and ratios. In exchange, you pay an upfront mortgage insurance premium (usually financed into the loan) plus a monthly premium that, on most loans with less than 10% down, stays for the entire term.
What to know
The mortgage insurance is the catch. FHA mortgage insurance doesn't cancel at 20% equity the way conventional PMI does. If your credit is good enough for a conventional loan, the conventional loan usually wins over time even if the FHA rate is lower. I'll show you both side by side.
Condos have to be approved. FHA maintains a list of approved condominium projects. If the building isn't on it, the loan doesn't work, so tell me the address before you write an offer.
The property has to pass. FHA appraisals include minimum property standards. Peeling paint, missing handrails, or an unsafe deck can hold up closing until fixed. It's manageable, but it's something to raise with the listing agent early.
Refinancing later is easy. The FHA streamline refinance lets you lower your rate later with minimal documentation and no appraisal, which is one reason FHA can be a good stepping-stone loan.
A common question
"Is FHA only for first-time buyers?" No. Anyone who meets the guidelines and will occupy the home can use it, and you can use it more than once, though you can only have one FHA loan at a time with limited exceptions.
Around Washington, DC
The FHA loan limit in the DC metro is $1,249,125 for 2026, the national ceiling, so FHA covers nearly every home a 3.5%-down buyer would be looking at here. Two local notes: FHA condo approval is a real constraint in DC and Arlington, where condos are a big share of inventory (single-unit approvals are possible but take time), and FHA pairs with DC's HPAP down-payment assistance and the Maryland Mortgage Program, which is often how a first-time buyer here gets to the closing table with very little cash.
Want to talk it through?
Thirty minutes on video. No application, no obligation, and no cost, now or later.