Low credit? Limited savings? FHA was built to help you succeed.

If you’re dreaming of homeownership but worried your credit history will hold you back, you’re not alone — and you’re not out of options.

👉 FHA loans exist specifically to help buyers with less-than-perfect credit become homeowners — without waiting years to rebuild.

Let’s break down why FHA is one of the best and most forgiving home loan programs for credit-challenged borrowers — and how it might be the right fit for you.

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🛠️ What Is an FHA Loan?

FHA stands for the Federal Housing Administration, a government agency that insures home loans made by approved lenders like PRMI.

It’s designed to help:

• First-time buyers
• Borrowers with credit scores under 680
• Renters ready to buy but low on savings
• People recovering from past financial hardship

Because the FHA insures the loan, lenders are more comfortable offering flexible credit and down payment requirements.

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✅ Why FHA Loans Work for Credit-Challenged Buyers

Feature	FHA Advantage
Minimum Credit Score	As low as 500 (w/ 10% down)
3.5% Down Payment	Available at 580+ credit
Gift Funds Allowed	100% of down payment can be a gift
Collections / Late Payments	Don’t always have to be paid off
Bankruptcy / Foreclosure	Allowed after 2–3 years
Manual Underwriting	Available for non-traditional credit files

📘 FHA is often the only option when conventional lenders say “no.”

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💵 What About Mortgage Insurance?

FHA loans come with mortgage insurance premiums (MIP), both upfront and monthly — but that’s what allows the program to work for buyers with more risk.

The good news?

• Upfront MIP can be rolled into the loan
• Monthly MIP is often more affordable than PMI on a low-score conventional loan
• You can refinance out of MIP later when your credit improves

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🔄 Can You Refinance an FHA Loan Later?

Yes — and FHA makes it easy through its Streamline Refinance program:

• No appraisal required
• No income documentation needed
• Lower MIP if you’ve paid on time for 6+ months
• You can switch to conventional later to drop MIP entirely

💡 FHA loans are a great way to get in, and not necessarily where you have to stay.

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🧠 Who’s a Good Fit for FHA?

You might be a good fit if:

• Your score is between 500–679
• You’re working to pay off collections but not quite there
• You’ve had a bankruptcy, short sale, or late payments
• You have stable income but limited savings
• You’re receiving gift funds or using down payment assistance

At PRMI, we don’t just issue pre-approvals — we build paths to approval.

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🏢 Why PRMI?

As an FHA-approved direct lender, we:

• Help you qualify with scores as low as 580 (or 500 with 10% down)
• Offer manual underwriting when needed
• Accept gift funds and down payment assistance
• Guide you from pre-approval through closing — and beyond

We make FHA loans work for real people with real life credit.

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👇 Ready to See If an FHA Loan Works for You?

Let’s review your credit, income, and goals — and show you how FHA could be your best path to homeownership.