FHA Loans
FHA loans: 3.5% down, including 2-4 family homes
FHA loans are insured by the Federal Housing Administration and allow 3.5% down with a credit score of 580 or higher. In New York City and North Jersey, their real power is owner-occupied 2-4 family homes.
Key facts
- Available in
- New York, New Jersey, Florida, Pennsylvania
- Down payment
- 3.5% with 580+ credit; 10% with 500-579
- Mortgage insurance
- Upfront premium plus annual premium
- Property types
- 1-4 family owner-occupied; FHA-approved condos
- Co-ops
- Generally not eligible
Who it's for
- First-time buyers with limited savings
- Buyers rebuilding credit
- Buyers of 2-4 family homes who will live in one unit
- Buyers using gift funds from family
An FHA loan on a three-family home in Canarsie or East New York lets a buyer put 3.5% down and count part of the projected rent toward qualifying. Few other loan types make a multi-family this accessible.
Condos must be FHA-approved or qualify for single-unit approval. We check the building before you make an offer.
Popular in Brooklyn
Coney Island, Gravesend, Canarsie, Bensonhurst & Bath Beach, Sunset Park, Flatbush & Ditmas Park, Kensington & Windsor Terrace, East Flatbush
Questions
Can I buy a 3-family with FHA?
Yes, if you will live in one unit. Rent from the other units can help you qualify, subject to FHA's self-sufficiency test on 3-4 unit properties.
Does FHA mortgage insurance ever go away?
With less than 10% down it lasts for the life of the loan. Many borrowers later refinance into a conventional loan to remove it.
Can gift funds cover the down payment?
Yes. FHA allows the full down payment to come from an eligible family gift with a signed gift letter.
Questions about FHA Loans?
A licensed loan officer will walk you through the numbers, usually the same day.