FHA Home Loans in Maryland, Washington, DC and Virginia

Approved lenders make FHA loans, while the Federal Housing Administration insures them. As a result, these loans can be a practical option for first-time and repeat buyers who want a low down payment, flexible gift-fund rules or more accommodating credit and debt-to-income guidelines.

FHA Loan Highlights

• Down payment as low as 3.5% for eligible borrowers.
• Gift funds and eligible grants may be used toward the down payment and closing costs.
• Available for eligible one- to four-unit primary residences when the borrower occupies the property.
• Qualified non-occupant co-borrowers may be permitted.
• Fixed-rate and certain adjustable-rate options may be available.
• FHA purchase and renovation financing may be available for properties needing repairs.

Maryland Assistance for First Responders and Teachers

Eligible Maryland first-time homebuyers using FHA financing may also qualify for assistance through the Maryland Mortgage Program. The new First Homes for First Responders and Teachers program offers qualifying borrowers a specially designated interest rate and 5% down payment and closing-cost assistance.

Learn about First Homes for First Responders and Teachers.

Credit Requirements

Although FHA program rules allow maximum financing for borrowers who meet the applicable credit standard, approval does not depend on a score alone. Credit history, income, assets, debts, payment history and automated underwriting findings also matter. In addition, individual lenders may apply requirements beyond FHA’s minimum standards.

We review the complete loan profile and explain whether FHA, conventional, VA, USDA or an assistance program provides the strongest overall option.

FHA Mortgage Insurance

In most cases, borrowers pay both an upfront FHA mortgage insurance premium and an annual premium through the monthly payment. However, borrowers can generally finance the upfront premium into the loan.

The annual premium and how long it remains depend on factors such as the original loan-to-value ratio, loan term and applicable FHA rules. Therefore, borrowers should compare FHA mortgage insurance with conventional PMI, the interest rate and the total cost of the loan.

FHA Loan Limits

Each year, FHA updates its loan limits by county, property type and number of units. For example, high-cost portions of Maryland, Washington, DC and Virginia may have higher limits than the national floor.

We will confirm the current limit for your property. Buyers can also use HUD’s official FHA mortgage-limit lookup.

FHA Property Standards and Appraisals

An FHA appraisal addresses value and identifies readily observable conditions affecting the property’s safety, security or soundness. It is not a substitute for a professional home inspection.

An appraiser or underwriter may require further evaluation or repairs if they observe conditions such as the following:

• Active roof leaks or significant roof deterioration
• Unsafe electrical, plumbing or heating conditions
• Structural movement, foundation damage or inadequate drainage
• Missing required utilities or nonfunctioning essential systems
• Defective paint surfaces in a pre-1978 home
• Unsafe access, missing protection at significant fall hazards or inadequate bedroom egress
• Evidence of wood-destroying insects, moisture damage, mold-like substances or other hazards requiring further evaluation

Still, minor cosmetic wear does not automatically require repair simply because the loan is FHA. Instead, appraisers and underwriters base the determination on the observed condition and applicable HUD guidance.

FHA for Multi-Unit and Renovation Purchases

Additionally, an eligible buyer may use FHA financing to purchase a two- to four-unit property while occupying one unit as a primary residence. FHA 203(k) renovation financing can also combine the purchase or refinance with eligible improvement costs in one mortgage.

Is FHA the Best Fit?

However, the lowest down payment does not always produce the best total loan. We compare the rate, mortgage insurance, cash required, monthly payment and long-term cost with your other available programs.

Loan programs, limits, mortgage insurance and eligibility requirements may change. All financing is subject to application, documentation, appraisal and underwriting approval.