Understanding FHA Loans
FHA loans are insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). Because the government insures the lender against loss, FHA guidelines are more flexible on credit history and down payment than many conventional loans.
They're a common choice for first-time buyers and for anyone whose credit is still recovering, and they can be used for one-to-four unit homes you plan to live in.
Who it's a good fit for
- First-time homebuyers
- Buyers rebuilding credit after past late payments
- Buyers with limited savings for a down payment
- Owner-occupants of a duplex, triplex or fourplex
Key details
- FHA loans carry an upfront mortgage insurance premium, which can be financed into the loan, plus an annual premium paid monthly.
- Maximum loan amounts are set by county each year.
- The home must be your primary residence and meet FHA property standards. In older homes, peeling paint, roof wear and missing handrails are common repair items.
- Down payment gifts from family are allowed within program rules.
FHA questions
Do FHA loans have mortgage insurance?
Yes. FHA loans have both an upfront premium and an annual premium. How long the annual premium lasts depends on your down payment and loan term.
Can I buy a multi-unit property with FHA?
Yes, as long as you live in one of the units. FHA can finance two-, three- and four-unit homes, and projected rent from the other units may help you qualify.
What are the FHA loan limits in Spokane County?
FHA limits are updated each year and differ by county. Contact Jake for the current figure for Spokane County or any other county you're buying in.
FHA financing around Eastern Washington
- Spokane, WA: Common for first homes in North Spokane, Hillyard and Spokane Valley, and for owner-occupied duplexes.
- Pullman, WA: Works for first homes in Pullman's older neighborhoods and in nearby Colfax.
- Tri-Cities, WA: Popular with first-time buyers in Pasco and Kennewick.
- Walla Walla, WA: Common for first homes in College Place and Walla Walla's east side.
- Whitman County, Washington: A fit for small-town homes in Colfax, Tekoa and Rosalia that meet FHA property standards.
- Franklin County, Washington: A common choice for first homes in Pasco's newer subdivisions.
- Adams County, Washington: A frequent fit for first homes in Othello and Ritzville.
- Garfield County, Washington: An option for first homes in Pomeroy that meet FHA property standards.
- Lincoln County, Washington: A fit for first homes in Davenport, Reardan and Odessa.
- Stevens County, Washington: A fit for in-town homes in Colville, Chewelah and Kettle Falls.
- Ferry County, Washington: An option for in-town homes in Republic that meet FHA standards.
- Pend Oreille County, Washington: A fit for in-town homes in Newport and Ione.
Related programs
Conventional Loans
Flexible financing for primary homes, second homes and investment property, not insured by a government agency.
Learn moreVA Loans
Home loans for eligible veterans, service members and surviving spouses, guaranteed by the Department of Veterans Affairs.
Learn moreFirst-Time Homebuyer Programs
Guidance, loan options and down payment assistance for buyers purchasing their first home.
Learn moreInformation on this page is general and educational. Loan approval, terms and eligibility depend on your full application, credit, property and current program guidelines.