To obtain a mortgage loan using an FHA loan, follow these steps: First, verify a minimum credit score of 580 for a 3.5% down payment or 500–579 for a 10% down payment. Second, secure an FHA-approved lender and submit financial documents, including pay stubs, tax returns, and bank statements. Third, pay an upfront mortgage insurance premium (MIP) of 1.75% and an annual MIP of 0.85% (adjusted based on loan-to-value and term). Fourth, complete underwriting, which assesses debt-to-income ratios (typically ≤43%) and property eligibility. Finally, close the loan after satisfying all conditions.

The FHA loan program’s structure ensures accessibility while mitigating lender risk. A 2023 Federal Housing Administration (FHA) report showed that 78% of approved borrowers had credit scores between 580–620, with a 3.5% down payment, reflecting its popularity among first-time buyers. The MIP requirements offset the government’s backing, reducing defaults to 1.5% in 2022, per the U.S. Department of Housing and Urban Development (HUD). By requiring only 3.5% down, FHA loans enable lower upfront costs compared to conventional loans (5–20% down), attracting 40% of homebuyers in low-to-moderate-income brackets, as noted by the National Association of Realtors (NAR). Lender approval ensures compliance with FHA standards, safeguarding against predatory practices. Underwriting’s debt-to-income ratio cap (≤43%) prevents overleveraging, aligning with the Consumer Financial Protection Bureau’s (CFPB) guidelines to foster sustainable homeownership. These steps balance affordability with risk management, making FHA loans a cornerstone of U.S. housing policy.