Short answerFHA loans let qualified buyers put as little as 3.5% down, with an upfront mortgage insurance premium of 1.75% of the loan and an annual premium of 0.55% for most borrowers. The FHA appraisal checks that the house is safe, secure, and sound. Peeling paint on pre 1978 homes and safety items are common required repairs.
How FHA loans work
- Down payment as low as 3.5% for qualified borrowers.
- Mortgage insurance: 1.75% upfront, often financed, and 0.55% a year for most borrowers.
- The appraisal follows HUD Handbook 4000.1 property requirements.
Making your offer stronger
Check the house for common FHA flags before you offer, and be clear in your offer about who handles required repairs. What an FHA appraiser requires.
Payment estimate: monthly cost calculator.
Frequently asked questions
Does FHA mortgage insurance go away?
On most FHA loans with less than 10% down, it lasts the life of the loan unless you refinance.
Can I use down payment assistance with FHA?
Often yes. See Indiana down payment assistance.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email [email protected].
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.