FHA loans (580+ FICO, 3.5% down) are the most accessible purchase mortgage for buyers with limited credit history or limited down payment savings. Lender experience with FHA underwriting varies — here are 4 lenders worth shopping for FHA financing.
Largest FHA lender by volume in the US. Accepts 580+ FICO for FHA. Strong digital workflow for FHA documentation. Verified Approval carries weight with sellers even on FHA offers.
Strong FHA program with in-house servicing — same company services your loan after closing. FHA Streamline Refinance support for when you want to reduce rate without full refi documentation.
Strong FHA approval rates with branch network support for FHA borrowers who prefer in-person assistance. DreaMaker program pairs with FHA for additional low-income support.
FHA loans plus closing-cost grants that can reduce upfront cash needed. America's Home Grant (up to $7,500) and Down Payment Grant (up to $10,000 in eligible markets) stack with FHA for qualified buyers.
HUD sets the minimum at 500 FICO (with 10% down) or 580 FICO (with 3.5% down). Most lenders add a 'lender overlay' — their own stricter minimum above HUD's floor. Rocket Mortgage and PennyMac accept 580+ for FHA 3.5% down. Some lenders require 620+ even on FHA. If you're between 580-619 FICO, shop specifically with lenders that don't impose the 620+ overlay.
FHA loans require mortgage insurance in two forms: (1) UFMIP (upfront MIP): 1.75% of loan amount at closing, rolled into the loan; (2) Annual MIP: 0.15-0.75% of loan balance per year, paid monthly. For loans with less than 10% down, annual MIP runs for the life of the loan (can only be removed by refinancing to conventional when LTV reaches 80%). For 10%+ down, MIP cancels at 11 years.
When LTV reaches 80% (typically via payments + appreciation), refinancing to conventional removes the lifetime MIP obligation. The break-even depends on the refinance closing costs vs monthly MIP savings. For a $300K FHA loan paying 0.55% annual MIP ($137.50/month), a $6,000 refinance cost breaks even in ~44 months. HUD publishes FHA program details at hud.gov. The CFPB has mortgage resources at consumerfinance.gov. See our full guide (/blog/best-mortgage-lenders-2026) and (/blog/best-personal-loans-2026). Reviewed by Brian's ClearValue Lending Team. Updated May 2026.