Are you a first-time home buyer looking to navigate the 2026 housing market with an FHA loan? This episode provides a comprehensive overview of the latest FHA loan requirements for 2026. Learn about the necessary credit scores, employment duration, and down payment amounts. Discover the pros and cons of FHA loans and gain insights into mortgage insurance calculations.

Key FHA Loan Requirements for 2026:

• FICO® score of at least 580 requires a 3.5% down payment.
• FICO® score between 500 and 579 necessitates a 10% down payment.
• Mortgage Insurance Premium (MIP) is mandatory.
• Debt-to-Income Ratio must be less than 57%.
• The property must be the borrower's primary residence.
• Proof of steady income and employment is required.

We also explain what an FHA loan is and the details of FHA mortgage insurance. The upfront mortgage insurance premium (UPMIP) is currently 1.75% of the base loan amount. We provide a step-by-step guide to calculating monthly mortgage insurance premiums using a detailed example.

FHA Loan Limits for 2025:

Low-Cost Areas:
One-unit: $551,288
Two-unit: $693,063
Three-unit: $837,720
Four-unit: $1,041,038

High-Cost Areas:
One-unit: $1,249,125
Two-unit: $1,599,375
Three-unit: $1,933,200
Four-unit: $2,402,625

For more information on FHA-approved condos and county loan limits, visit:
FHA Approved Condo List
FHA County Loan Limits