FHA Home Loans

Flexible mortgage options for credit-challenged or first-time buyers

If you’ve been struggling to qualify for a conventional mortgage, or you’re buying your first home and unsure where to start, FHA loans can provide a flexible, affordable path to homeownership. CTC Mortgage offers FHA home loan solutions across Florida, Georgia, North Carolina, and South Carolina, with personalized guidance to help you understand your options and move forward with confidence.

What Is an FHA Loan?

FHA loans are government-backed mortgages insured by the Federal Housing Administration. These loans were created to help more Americans achieve homeownership—especially those with lower credit scores, limited savings, or a higher debt-to-income ratio. With flexible guidelines and low down payment options, FHA loans are a go-to choice for first-time buyers and anyone who doesn’t qualify for traditional loans.

Benefits of FHA Loans

FHA loans offer several unique advantages that make them an excellent option for many borrowers, especially those just starting out:


  • Low Down Payment: Buy a home with as little as 3.5% down if your credit score is 580 or higher.
  • Flexible Credit Requirements: FHA allows credit scores as low as 500 with a larger down payment.
  • Higher Debt-to-Income Ratios: More lenient DTI standards can help more buyers qualify.
  • Gift Funds Allowed: Use gift money from family or a down payment assistance program.
  • Assumable Loans: FHA loans may be assumable, meaning a future buyer could take over your low rate.

These benefits make FHA loans especially attractive to buyers who need a more accessible path to homeownership.

FHA Loan Requirements & Loan Limits

FHA loans have defined eligibility criteria, but they’re typically easier to meet than conventional loan guidelines. Here’s what you need to know:



  • Credit Score: 580+ for 3.5% down; 500–579 may qualify with 10% down.

  • Down Payment: 3.5% minimum (can be fully gifted).

  • Mortgage Insurance: FHA loans require both upfront (UFMIP) and monthly mortgage insurance premiums (MIP).

  • Loan Limits: FHA sets county-specific limits. For example, the 2025 limit for a single-family home in Palm Beach County is $531,000. Check your local county limits or ask us for details.

  • Primary Residence Only: FHA loans must be used to purchase or refinance a primary residence—not investment properties or second homes.

FHA Loans for First-Time Buyers

First-time homebuyers often choose FHA loans because of their flexibility and low barriers to entry. If you have a limited credit history or are still building your savings, FHA might be the right fit. These loans also pair well with down payment assistance programs and state-specific initiatives designed to help first-time buyers.



In Florida, eligible frontline workers may qualify for support through programs like Hometown Heroes. Even if you’re not a first responder or veteran, there may be options available. Our team will help you explore what you qualify for and find the most cost-effective way to buy your home.

FHA vs. Conventional Loans

While FHA loans are more forgiving with credit and income, they do include mandatory mortgage insurance costs that don’t drop off over time. In contrast, conventional loans may be better suited for buyers with higher credit scores or those able to put 20% down to avoid private mortgage insurance (PMI).



If you’re unsure which route makes the most financial sense, we’ll walk you through the pros and cons of FHA vs. Conventional based on your unique scenario.

How to Apply for an FHA Loan

Getting started with an FHA loan is simple with CTC Mortgage. Here’s what the process typically looks like:


  1. Initial Consultation: We’ll learn about your goals, finances, and credit situation.
  2. Document Collection: You’ll gather W-2s, pay stubs, bank statements, and ID.
  3. Pre-Approval: We’ll review your credit and income, then provide a pre-approval letter to help you shop confidently.
  4. Loan Processing: Once you find a home, we’ll order an appraisal and underwrite the loan.
  5. Closing: We’ll help you get “Clear to Close” quickly so you can move into your new home.

Our team is with you at every step—answering your questions, checking for savings opportunities, and ensuring your FHA loan fits your budget.

Explore Other Loan Options

Looking for a different type of mortgage? Compare our other home purchase programs:

Ready to Get Started?

Contact Us today for a free pre-approval or to learn more about your mortgage choices.

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FHA Loan FAQ

Answers to common mortgage questions

  • What is the minimum credit score for an FHA home loan?

    FHA loans require a minimum credit score of 580 to qualify for the low 3.5% down payment. If your score falls between 500 and 579, you may still qualify with a 10% down payment. This flexibility makes FHA loans one of the most accessible options for borrowers with lower credit scores or limited credit histories.

  • How much do I need for a down payment on an FHA loan?

    The standard FHA down payment is 3.5% of the home’s purchase price if your credit score is at least 580. This amount can be covered by personal savings or gift funds from family members or approved assistance programs. If your score is lower, you may need to put 10% down to qualify.

  • Are FHA loans only for first-time buyers?

    No, FHA loans are available to all eligible borrowers—even those who have owned homes before. However, they’re especially popular with first-time buyers because of the lower down payment and easier credit requirements. The only requirement is that the FHA-financed property must be your primary residence.

  • Do FHA loans require mortgage insurance?

    Yes, FHA loans include two forms of mortgage insurance: an upfront premium (UFMIP), typically 1.75% of the loan amount, and a monthly premium (MIP) added to your monthly payment. These premiums help protect lenders and make it possible for borrowers with lower credit or smaller down payments to qualify.

  • Can I use an FHA loan to buy a fixer-upper?

    Yes! FHA offers a 203(k) rehabilitation loan, which lets you finance the purchase and renovation of a home in one mortgage. This is ideal if you’re buying a property that needs repairs or updates. We can help determine if this or another specialty program fits your needs.