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FHA Loans: A Flexible Path to Homeownership

Atlantic Bay Mortgage Group® offers FHA loans to borrowers in Virginia, North Carolina, Georgia, Florida, and beyond. Backed by the Federal Housing Administration, FHA loans make homeownership more accessible for buyers with lower credit scores, smaller down payments, or a shorter credit history.

Atlantic Bay has helped thousands of homebuyers achieve homeownership with FHA financing. No matter where you are in your homebuying journey, our team is here to guide you, from buying your first home to rebuilding your credit or navigating a smaller down payment.

See If You QualifyTalk to a Mortgage Banker

Is an FHA loan right for you?

An FHA loan is often the right fit for buyers in these situations. Find the one that sounds like you.

  • FHA loans allow credit scores as low as 580 with a 3.5% down payment, and some borrowers with scores between 500 and 579 may still qualify with a larger down payment.

    Check Your FHA Eligibility

  • With a minimum down payment of just 3.5%, FHA loans can open the door to homeownership sooner, especially when paired with gift funds or down payment assistance.

    Explore Down Payment Options

  • FHA loans are one of the most popular mortgage options for first-time homebuyers because they combine lower down payment requirements with flexible credit guidelines. Here's a first-time homebuyer checklist to help you get organized.

    Learn About First-Time Homebuyer Options

  • Both offer a path to homeownership, but they differ in credit requirements, mortgage insurance, and long-term cost. Don’t worry! We'll help you compare side by side.

    Compare FHA vs. Conventional

  • FHA guidelines tend to be more forgiving of past credit events, like a bankruptcy or foreclosure, than Conventional financing. A Mortgage Banker can walk you through the waiting periods that apply to your situation.

    Talk to a Mortgage Banker
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What is an FHA loan?

An FHA mortgage is a loan insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The FHA doesn't lend money directly. Instead, it insures the loan, which allows lenders like Atlantic Bay to offer more flexible qualification requirements than many other loan types.

Because that insurance reduces the lender's risk, FHA loans tend to be more accessible to buyers with lower credit scores, smaller down payments, or limited credit history. They're primarily used for primary residences and can finance properties with up to four units, if you live in one of them.

See If You Qualify

FHA Loan Requirements

Wondering what it takes to qualify for an FHA loan? Lenders weigh a combination of several factors.

  • Credit score: as low as 580 for a 3.5% down payment, or 500 to 579 with a 10% down payment
  • Down payment: 3.5% with a qualifying credit score
  • Debt-to-income ratio (DTI): typically up to 43%, though some borrowers qualify with a higher ratio when other compensating factors are strong
  • Mortgage insurance premium (MIP): an upfront premium paid at closing, plus an annual premium included in your monthly payment
  • Income and employment: stable, verifiable income and two years of employment history
  • Loan amount: must fall within the FHA loan limit for your county. As of July 2026, the national range for a single-unit home runs from $541,287 to $1,249,125. Check HUD.gov for your county's current figure.
  • Property requirements: the home must serve as your primary residence and meet FHA's minimum property standards

Not sure if you qualify? Many borrowers simply assume they won't qualify for a mortgage, only to discover an FHA loan is a great fit. An Atlantic Bay Mortgage Banker can review your options and answer your questions.

Check Your FHA Eligibility

FHA vs. Conventional: Which is right for you?

The right loan depends on your financial goals, credit profile, and down payment. We'll help you compare the numbers to determine which option best fits your needs.

FeatureFHA LoanConventional Loan
Best For
Buyers with lower credit scores or limited credit history
Buyers with a credit score of 620+ and stable income
Minimum Credit Score
As low as 580
Typically 620
Minimum Down Payment
3.5%
3%
Mortgage Insurance
Required in most cases for the life of the loan
Required with less than 20% down, but can be removed after reaching 20% equity
Long-Term Cost
May cost more over the life of the loan because mortgage insurance typically remains in place
Can become more affordable over time once mortgage insurance is removed
Key Advantage
Easier qualification for borrowers with lower credit scores or limited credit history
Lower long-term monthly payment potential

In short: FHA tends to be more forgiving on credit; Conventional tends to be less expensive over time for buyers who qualify. Comparing your real numbers side by side is the best way to know which one saves you more.

Talk to a Mortgage Banker

Ready to talk through your FHA mortgage options? Our local Mortgage Bankers can walk you through what fits your situation. No pressure and no commitment.

Find a Mortgage BankerSee If You Qualify

Frequently asked questions about FHA mortgages

  • An FHA mortgage is a loan insured by the Federal Housing Administration. It's designed to make homeownership more accessible, with more flexible credit and down payment requirements than many other loan types.

  • Most lenders look for a credit score of at least 580 for a 3.5% down payment, a debt-to-income ratio at or below 43% in most cases, and stable, verifiable income, considered together rather than in isolation.

  • FHA loans accept lower credit scores and smaller down payments, but mortgage insurance typically lasts for the life of the loan. Conventional loans generally require stronger credit but let you remove mortgage insurance once you build 20% equity.

  • FHA loan limits are the maximum loan amounts the FHA will insure in each area. As of July 2026, the national floor is $541,287 for a one-unit property, with a ceiling of $1,249,125 in higher-cost areas. HUD updates these limits annually, so check HUD.gov for your county's current figure. See the full 2026 FHA loan limits by area.

  • As little as 3.5%, if your credit score is 580 or higher. Borrowers with scores between 500 and 579 may still qualify with a 10% down payment. Learn about down payment strategies for first-time homebuyers.

  • FHA loans require an upfront mortgage insurance premium paid at closing, plus an annual premium included in your monthly payment. As of July 2026, if your down payment is 10% or more, MIP typically drops off after 11 years, though these rules are set by FHA policy and subject to change. With a smaller down payment, it usually stays for the life of the loan unless you refinance.

    For more on how mortgage insurance works generally, see this overview.

  • Often, yes. FHA guidelines tend to allow for shorter waiting periods after a bankruptcy or foreclosure than Conventional loans, especially when you can show your credit has recovered. A Mortgage Banker can review your specific timeline.

  • Most FHA purchases close in 30 to 45 days. Staying organized and responsive throughout underwriting keeps things moving smoothly.

  • FHA loans are intended for primary residences. You can finance a property with up to four units, if you live in one of them, but FHA loans can't be used for second homes or investment properties.

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Take the next step toward your FHA loan

Atlantic Bay is here to help you take the next step toward your FHA mortgage loan. See if you qualify by completing our quick online form or connect with a local Mortgage Banker who can review your scenario, answer your questions, and help you find the loan that’s right for you.

See If You QualifyTalk to a Mortgage Banker

Information is for educational purposes only and should not be relied upon by you. Discussions regarding any financial information provided are not intended as individual recommendations and do not reflect the views or advice of Atlantic Bay Mortgage Group, L.L.C. The views expressed are subject to change at any time in response to changing circumstances in the market. Other loan program restrictions and eligibility requirements may apply. For refinances, the total finance charges may be higher over the life of the loan. Atlantic Bay Mortgage Group, L.L.C. disclaims any obligation to publicly update or revise any views expressed or information given. Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend. Atlantic Bay Mortgage Group, L.L.C. NMLS #72043 (nmlsconsumeraccess.org) is an Equal Housing Lender. Located at 600 Lynnhaven Parkway Suite 100 Virginia Beach, VA 23452.

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Loan programs may change at any time with or without notice. Information deemed reliable but not guaranteed. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend. Atlantic Bay Mortgage Group, L.L.C. NMLS #72043 (nmlsconsumeraccess.org) is an Equal Housing Lender.