The short answer
An FHA loan is a mortgage made by an approved private lender and insured by the Federal Housing Administration, part of HUD. The insurance can allow more flexible qualification, but FHA loans require mortgage insurance and are generally intended for primary residences.
Mortgage guidance with Jennifer Reich · NMLS 162239
FHA financing is not a loan from the government — Fairway is the lender, and the FHA insures the loan against default. That insurance is what allows FHA guidelines to be more flexible in certain areas, such as down payment and credit history.
Flexibility does not mean automatic eligibility. Every FHA file is reviewed on the whole picture: credit, income, debts, assets, and the property.
How does FHA mortgage insurance work?
FHA loans include an upfront mortgage insurance premium, which is often financed into the loan, plus an annual premium paid monthly. Depending on your down payment and loan term, the annual premium may last for a set number of years or for the life of the loan.
Because of this, it is worth comparing an FHA loan with a conventional option. For some borrowers FHA is the better fit; for others, conventional PMI costs less over time.
What about down payment and credit?
FHA guidelines allow down payments as low as 3.5% for qualified borrowers who meet credit requirements, with higher down payments required in some situations. Lenders may also apply their own requirements. Rather than relying on a single published credit score, Jennifer will review your actual credit report and explain where you stand.
Gift funds from eligible donors can often be used toward the down payment, with proper documentation.
Occupancy and property requirements
FHA loans are generally for owner-occupied primary residences; at least one borrower typically must move in within a set timeframe. The property must meet HUD's minimum property standards, which the appraiser reviews. Condominiums generally must be in an FHA-approved project or meet single-unit approval requirements.
FHA loan limits are set by county and change periodically. Jennifer will confirm the current limit for Davis, Washington, or any other Utah county.
Who may want to explore it
- Buyers with a smaller down payment
- Borrowers rebuilding or establishing credit
- Buyers with higher debt-to-income ratios who still show reliable income
- Homeowners exploring FHA streamline refinance options
Documentation & eligibility
- Pay stubs, W-2s, and/or tax returns
- Bank statements and gift letter if gift funds are used
- Photo ID and Social Security verification (provided through the secure application)
- Explanations for recent credit events, if applicable
Benefits
- Lower down payment minimums for eligible borrowers
- More flexibility around credit history in some cases
- Gift funds can often be used
- FHA loans may be assumable by a qualified buyer
Tradeoffs
- Upfront and annual mortgage insurance premiums
- Annual premium may last the life of the loan depending on terms
- Primary residence only; county loan limits apply
- Condo and property condition requirements can be stricter
Questions to ask Jennifer
- How would an FHA loan compare to conventional for my credit and down payment?
- How long would the FHA annual premium apply to my loan?
- Is the condo I am looking at FHA-approved?
- What is the FHA loan limit in my county right now?
FHA Loans: common questions
How does FHA mortgage insurance work?
FHA loans include an upfront mortgage insurance premium, which is often financed into the loan, plus an annual premium paid monthly. Depending on your down payment and loan term, the annual premium may last for a set number of years or for the life of the loan. Because of this, it is worth comparing an FHA loan with a conventional option. For some borrowers FHA is the better fit; for others, conventional PMI costs less over time.
What about down payment and credit?
FHA guidelines allow down payments as low as 3.5% for qualified borrowers who meet credit requirements, with higher down payments required in some situations. Lenders may also apply their own requirements. Rather than relying on a single published credit score, Jennifer will review your actual credit report and explain where you stand. Gift funds from eligible donors can often be used toward the down payment, with proper documentation.
Occupancy and property requirements
FHA loans are generally for owner-occupied primary residences; at least one borrower typically must move in within a set timeframe. The property must meet HUD's minimum property standards, which the appraiser reviews. Condominiums generally must be in an FHA-approved project or meet single-unit approval requirements. FHA loan limits are set by county and change periodically. Jennifer will confirm the current limit for Davis, Washington, or any other Utah county.
Utah mortgage guidance
A local conversation. A property-specific plan.
Jennifer serves borrowers in Davis County and Washington County from her Kaysville office. Eligibility depends on your financial profile, the actual property, and the loan program—not simply the city where you buy.
Office: 69 East 200 North, Suite A, Kaysville, UT 84037. Programs and terms are subject to underwriting and may change.