— FHA LOANS
FHA LOANS
Flexible government-insured mortgage options designed to support accessible homeownership. A real path to homeownership.
— ABOUT FHA LOANS
FHA
Home Loans
Federal Housing Administration (FHA) loans are government-insured mortgages designed to make homeownership more accessible – particularly for buyers who are earlier in their financial journey, working with a smaller down payment, or coming back from a credit setback.
The federal government insures FHA loans, which means lenders can offer more flexible qualification standards than conventional financing allows. That flexibility shows up in three places that matter most to buyers: the down payment requirement, the credit score threshold, and the debt-to-income ratio limits.
FHA is not just for first-time buyers. It is a legitimate financing tool for repeat buyers, relocating families, and anyone whose financial profile fits better within FHA’s guidelines than conventional underwriting. At Pacific Home Loans, we evaluate FHA alongside conventional and VA options for every buyer – the goal is to find the structure that actually fits your situation, not just the easiest loan to process.
— FHA LOANS
Why Consider
an FHA Loan?
FHA’s flexibility is real, and it shows up in ways that matter to buyers navigating competitive markets or tight savings timelines.
Low Down Payment Down payments start as low as 3.5% for eligible borrowers – one of the lowest entry points available in conventional lending. For buyers who are ready to own but have not had years to accumulate a large cash reserve, this is often the deciding factor.
Flexible Credit Guidelines FHA accepts borrowers with credit profiles that would be declined or significantly repriced under conventional underwriting. If you have had a rough patch – medical debt, job loss, a prior foreclosure or bankruptcy – FHA’s waiting periods and credit thresholds are designed with those realities in mind.
Higher Allowable Debt-to-Income Ratios FHA allows higher debt-to-income ratios in certain scenarios compared to conventional guidelines. For buyers carrying student loans, car payments, or other obligations alongside their housing costs, this can be the difference between qualifying and not.
Gift Funds Are Eligible Down payment and closing costs can be covered in whole or in part by gift funds from an eligible donor. This is particularly useful for first-time buyers receiving family support.
FHA Loans Are Assumable An assumable mortgage means a future buyer can take over your loan – and your interest rate – when you sell. In a high-rate environment, this can be a meaningful selling advantage when the time comes.
Not Limited to First-Time Buyers Despite a common misconception, FHA financing is available to any eligible borrower purchasing a primary residence. You do not need to be buying for the first time.
— LOAN LIMITS
2026 FHA
Loan Limits
2026 Hawaii FHA Loan Limits
Honolulu County
- 1-Unit: $828,000
- 2-Unit: $1,060,000
- 3-Unit: $1,281,300
- 4-Unit: $1,592,350
Maui/Kalawao County
- 1-Unit: $1,299,500
- 2-Unit: $1,663,600
- 3-Unit: $2,010,950
- 4-Unit: $2,499,100
Kauai County
- 1-Unit: $1,110,900
- 2-Unit: $1,422,150
- 3-Unit: $1,719,050
- 4-Unit: $2,136,400
Hawaii County (Big Island)
- 1-Unit: $586,500
- 2-Unit: $750,800
- 3-Unit: $907,550
- 4-Unit: $1,127,900
Looking Up FHA Loan Limits in Other Counties
FHA loan limits vary by county across the country and are updated annually by the U.S. Department of Housing and Urban Development (HUD) to reflect local home prices.
HUD’s FHA Mortgage Limits page allows you to look up FHA loan limits for one or more areas and list them by state, county, or Metropolitan Statistical Area.
For 2026, the national floor for a single-family home is $541,287, while the ceiling in high-cost markets reaches $1,249,125 – and as a special exception area, Hawaii’s limits reflect the higher costs of construction and real estate in our state. To find the FHA loan limit for any county in the U.S., visit HUD’s official lookup tool, or contact one of our loan officers – we’re happy to help you understand what you may qualify for.
— WHAT TO KNOW
FHA Mortgage
Requirements and MIP
What FHA Does Not Cover – And What That Means for You
Understanding FHA’s limitations is just as important as understanding its benefits. There are a few things worth knowing before you get too far into the process.
Mortgage Insurance Is Required FHA loans require both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP) paid monthly. The upfront premium can be rolled into the loan. The annual premium continues for the life of the loan in most cases – which is one reason why buyers with stronger credit profiles sometimes find conventional financing more cost-effective over the long run, even with a higher initial rate. We run the comparison for every borrower so you can make an informed decision.
Primary Residence Only FHA financing is available for primary residences only. It cannot be used for investment properties or second homes.
Property Condition Standards The property must meet FHA’s minimum property standards, which means homes in significant disrepair may not qualify for standard FHA financing. If the property needs work, the FHA 203(k) Renovation Loan may be the right path – it allows you to finance both the purchase and the cost of repairs in one loan.
— WHAT TO KNOW
FHA Loan Condo
CONSIDERATIONS
FHA condo financing comes with an additional layer of complexity that catches buyers off guard more often than any other part of the process. The building – not just you as the borrower – must be FHA-approved or go through a spot approval process. That means project eligibility, owner-occupancy ratios, HOA financial health, litigation exposure, and insurance coverage all factor into whether FHA financing is available for a specific unit.
In resort markets and vacation destination areas – where short-term rental activity and investor concentration are common – FHA approval is often more difficult to obtain. If the condo you want does not qualify for FHA, that does not necessarily mean the purchase is off the table. It means you need a different program.
— COMPARING OPTIONS
How FHA Compares
to Other Programs
FHA is one of three primary agency financing paths – and the right one depends on your eligibility, credit profile, and purchase scenario.
FHA vs. VA If you are an eligible veteran or active-duty service member, VA financing is almost always the stronger option – zero down payment, no mortgage insurance, and competitive rates. FHA is the right fallback when VA eligibility is not available or the property does not meet VA requirements.
→ VA Loan
FHA vs. Conventional Conventional loans are more cost-effective for borrowers with strong credit because they avoid the lifetime mortgage insurance requirement that comes with most FHA loans. For buyers with credit profiles below 680 or limited savings, FHA typically offers better terms. The crossover point depends on your specific numbers – we run the comparison before you decide.
FHA vs. Non-QM If standard income documentation is a challenge – self-employment, variable income, recent career change – and your credit profile does not fit neatly into FHA guidelines either, Non-QM programs may offer a path that neither FHA nor conventional can. It is worth knowing all the options before assuming a program does or does not work.
— THE PLATFORM
How FHA Fits Into the
PHL Lending Platform
Traditional Agency Financing (FHA, VA, Conventional)
↓
Alternative Documentation (Non-QM) – for borrowers who need a different qualification path
↓
Portfolio Lending Solutions – for complex or high-value transactions
Every borrower who comes to us gets evaluated across the full platform. FHA is not the default – it is the right answer when it genuinely fits best.
→ First-Time Homebuyer Programs
→ Portfolio Loans & Flexible Financing Solutions
— COMMON QUESTIONS
FHA Loan
FAQ
Have a question not answered here? Our team is available to walk through your specific scenario.
