Question 1

How much down payment is required for FHA?

Accepted Answer

FHA financing typically requires a minimum down payment of 3.5% of the purchase price for borrowers meeting standard credit guidelines. Borrowers with lower credit scores may be required to put down 10%.

Question 2

Can I use gift funds?

Accepted Answer

Yes. FHA guidelines allow eligible gift funds from family members or approved sources to be applied toward the down payment and closing costs, provided proper documentation is supplied.

Question 3

Can I buy a multi-unit property with FHA?

Accepted Answer

Yes. FHA financing may be used to purchase 2-, 3-, or 4-unit properties, provided the borrower occupies one of the units as their primary residence. Rental income from the other units may help with qualifying.

Question 4

Can FHA be used more than once?

Accepted Answer

FHA loans are generally intended for primary residences and most borrowers carry only one FHA loan at a time. Exceptions may apply in certain qualifying circumstances such as relocation or family-size changes.

Question 5

Do FHA loans require mortgage insurance?

Accepted Answer

Yes. FHA loans require an upfront mortgage insurance premium (UFMIP) plus an annual mortgage insurance premium (MIP) paid monthly. Duration depends on the loan term and loan-to-value ratio.

Question 6

What credit score is needed?

Accepted Answer

FHA program guidelines generally allow scores as low as 580 for 3.5% down. Scores between 500–579 may still qualify with a 10% down payment. Lender overlays may apply.

Question 7

Can I refinance an FHA loan later?

Accepted Answer

Yes. Options include the FHA Streamline Refinance for existing FHA loans and FHA cash-out refinances, each with its own qualification criteria.

Question 8

What property types are eligible?

Accepted Answer

Eligible properties include single-family homes, FHA-approved condominiums, eligible townhomes, and 2–4 unit properties when one unit is owner-occupied.

Question 9

Does FHA require a termite inspection?

Accepted Answer

Not automatically. FHA does not require a pest inspection on every transaction. If the appraiser notes evidence of infestation, damage, or conditions that affect the property's safety or livability, a pest inspection or treatment may be required.

Question 10

Will FHA make me fix a 20-year-old water heater?

Accepted Answer

FHA is concerned with safety, soundness, and functionality — not age alone. A properly working unit with a functioning T&P valve, proper venting, and no leaks is typically acceptable regardless of age.

Question 11

Will FHA make me fix a older roof?

Accepted Answer

FHA generally looks for remaining useful life and no active leaks. Missing shingles, exposed decking, or interior staining are the items most likely to trigger a call-out for repair.

Question 12

Will FHA make me fix a missing gfci outlet?

Accepted Answer

GFCI protection may be required in kitchens, bathrooms, garages, and exterior outlets when the missing protection creates a documented safety hazard. Appraiser discretion applies.

Question 13

Will FHA make me fix a peeling paint?

Accepted Answer

For homes built before 1978, peeling, chipping, or flaking paint must be repaired prior to closing due to potential lead-based paint hazards under HUD's Lead Safe Housing Rule.

Question 14

Will FHA make me fix a broken window?

Accepted Answer

Cracked or broken windows often require repair if they affect the safety, security, or weather-tightness of the home. Cosmetic cracks may be reviewed case-by-case.

Question 15

Will FHA make me fix a missing handrails?

Accepted Answer

Stairways with three or more steps generally require a properly secured handrail on at least one side to meet FHA Minimum Property Standards.

Question 16

Will FHA make me fix a no permanent heat source?

Accepted Answer

The home must have a permanent heat source capable of maintaining a minimum of 50°F in all living areas. Space heaters and portable units do not satisfy this requirement.

Question 17

Will FHA make me fix a active plumbing leak?

Accepted Answer

Active leaks, non-functional fixtures, missing P-traps, and improper drainage typically must be corrected to satisfy FHA Minimum Property Requirements before closing.

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Why Many Homebuyers Choose FHA Financing

3.5% Down Payment

Flexible Credit Requirements

Gift Funds Allowed

Higher Debt-to-Income Flexibility

Fixed-Rate Security

Multi-Unit Opportunity

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Will FHA Make Me Fix That?

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