FHA Loans — Low Down Payment, Direct Lender
Qualify with as little as 3.5% down. Get a same-day pre-approval from a direct lender who knows FHA inside and out — no broker markup, no runaround.
Minimum Down Payment
Minimum Credit Score
Days to Close
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What Is an FHA Loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Because the federal government covers lenders against default, FHA-approved lenders can offer more flexible terms than a conventional loan — meaning lower credit score requirements, smaller down payments, and greater flexibility for borrowers with imperfect credit histories.
FHA loans are available to first-time buyers and repeat buyers alike. They’re one of the most popular paths to homeownership in the metro area, where home prices are higher than the national average and many buyers need every advantage they can get on the down payment front. If you have a credit score of 580 or above, you may qualify with as little as 3.5% down. Credit scores between 500 and 579 may still qualify with a 10% down payment.
One important consideration with FHA loans is mortgage insurance. All FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount, which is rolled into the loan amount. Plus a monthly MIP between 11 years to the life of the loan depending on the Loan to Value (LTV). For many borrowers, the lower down payment and easier qualification more than offset this cost — but it’s something to weigh against a conventional loan. Our team will walk you through both options so you can make the right call. Compare a FHA Loan with a Conventional Loan to see which fits your goal →
What FHA loans can be used for
- Primary residence purchase
- 2–4 unit multi-family (owner-occupied)
- Approved condos & single-unit approvals
- FHA Streamline Refinance
- Down payment assistance compatible
- Gift funds for down payment accepted
FHA Loan Requirements
580 or above qualifies for a 3.5% down payment. Scores between 500 and 579 require 10% down.
As low as 3.5% of the purchase price (580+ credit score). Gift funds from family members are allowed.
FHA allows up to 56.99% Total Debt Ratio for credit scores above 580.
Generally two years of verifiable, consistent income. Self-employed borrowers provide two years of tax returns.
All FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount, which is rolled into the loan amount. Plus a monthly MIP between 11 years to the life of the loan depending on the Loan to Value (LTV).
Must be your primary residence. Eligible for 1–4 unit properties, condos, and townhomes meeting FHA standards.
FHA loan limits vary by county. In many NY metro counties including the five boroughs, limits are set at the high-cost ceiling. Contact PHS to confirm the limit for your county.
Why Borrowers Choose Powerhouse Solutions for FHA Loans
Our team has closed thousands of FHA loans across the five boroughs, Long Island, Westchester, and New Jersey — including complex cases other lenders turned away. FHA isn’t a side product for us. It’s one of our highest-volume loan types.
Powerhouse Solutions is a direct lender. That means we underwrite, approve, and fund your loan ourselves. No middlemen, no added fees, and a faster path to closing than a broker can offer.
Your dedicated Powerhouse Solutions loan officer reviews your file and issues a pre-approval letter — often the same day you apply. In the current real estate market, speed is not a luxury. It’s a competitive advantage.
As a direct lender with full control of the process, we move fast. Most of our FHA loans close in under 30 days — no bank delays, no approval committee, no waiting.
FHA vs. Conventional Loan — Which Is Right for You?
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FHA Loan
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Conventional Loan
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Down Payment
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As low as 3.5%
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Typically 5–20%
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Credit Score
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580+ (3.5% down) / 500–579 (10% down)
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Usually 620 or above
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Mortgage Insurance
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Upfront MIP + monthly MIP for life of loan for down payments less than 10%
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PMI only — drops off at 20% equity
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Loan Limits
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Set by county — contact Powerhouse Solutions for yours
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Higher limits available
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Best For
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Limited savings or credit challenges
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Strong credit, larger down payment
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Property Types
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1–4 unit primary residences, Townhouses, and Condos
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Primary, second homes, investment
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Rate Type
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Fixed
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Fixed
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Not sure which loan fits your situation? We’ll tell you straight.
Ready to Find Out If You Qualify for an FHA Loan?
How It Works
From Application to Closing
Tell us about your situation in under 2 minutes. No commitment, no credit pull.
Your dedicated loan officer reviews your details and issues a pre-approval letter, often the same day.
Powerhouse Solutions manages the entire process from underwriting to title. You focus on finding your home.
As a direct lender, we control the timeline. No bank delays, no middlemen.
What Our FHA Borrowers Say
How long does FHA loan approval take?
What credit score do I need for an FHA loan?
Can I use an FHA loan for a multi-family property?
What are FHA loan limits?
What makes Powerhouse Solutions different from a bank for FHA loans?
Do I have to be a first-time buyer to get an FHA loan?
No. FHA loans are available to any borrower who meets the eligibility requirements, regardless of whether they’ve owned a home before. They’re popular with first-time buyers because of the low down payment, but repeat buyers and those who have gone through credit challenges also use FHA financing.