The published rules
These are programme rules, not Plinth policy. Where a figure is reset each year — conforming limits, FHA county limits, the USDA fee, the VA fee table — the mechanism is described and the number is not, because a stale number on a lending page is worse than no number.
- Down payment
- 3.5% with a credit score of 580 or above. Between 500 and 579 the minimum is 10%. Those are the FHA thresholds; individual lenders commonly set higher ones.
- Upfront premium
- An upfront mortgage insurance premium of 1.75% of the base loan amount. It is normally financed into the loan rather than paid in cash, which means you pay interest on it for as long as you keep the loan.
- Annual premium
- An annual MIP is collected monthly. On a 30-year loan with less than 10% down it is charged for the life of the loan. With 10% or more down it ends after 11 years. Getting to 20% equity does not remove it - only refinancing out of FHA does.
- Loan limits
- FHA sets county-by-county limits each year, with a national floor and a national ceiling. A county at the floor and a county at the ceiling are very different markets.
- The property
- The appraisal is an FHA appraisal, and the house has to meet HUD minimum property requirements. Peeling paint on a pre-1978 house, a missing handrail or a failed roof can stop the file.

What it will not do
- It is not the cheapest loan for a strong credit profile. Compare it against a conventional loan with PMI before assuming it wins.
- The life-of-loan insurance means the exit is a refinance, and a refinance depends on rates you cannot see today.
- It is for a home you will live in. It is not an investment property programme.
What to find out before you go further
- 01Your credit score against the 580 and 500 thresholds, and against your lender’s own overlay.
- 02Whether you can reach 10% down, which changes the insurance from permanent to 11 years.
- 03The FHA limit in your county this year.