FHA is the government-backed loan built for real-life borrowers — a credit score in the 500s or 600s, a thinner savings account, a little more debt than the textbook allows. You can buy with 3.5% down, qualify with a score as low as 580, and use gift money for the whole down payment. Beto shops FHA across 100+ lenders to get you the best version of it — for free.
Most people who assume they can't get a mortgage are using conventional-loan standards. FHA plays by a different, more forgiving set of rules — that's the entire point of the program.
This is true for a lot of conventional loans, which lean on higher scores and tighter debt ratios. So people self-reject and keep renting — never finding out there's a loan designed for exactly their situation.
A 580 score qualifies you for 3.5% down. Even 500–579 can work with 10% down. FHA allows higher debt-to-income than conventional, lets the entire down payment come from a gift, and has shorter waiting periods after a past bankruptcy or foreclosure. A rough credit chapter doesn't end the conversation.
It's insured by the federal government, which is what lets lenders say yes when they'd otherwise say no. Three things make it the on-ramp to ownership for so many Texas buyers.
Qualify at 580 with 3.5% down, or 500–579 with 10% down. Past bankruptcy or foreclosure carries shorter waiting periods than conventional, and collections won't automatically sink you.
Down to a 500 scoreThe entire 3.5% down payment can be a gift from family — and it stacks with down payment assistance. A seller can also contribute up to 6% toward your closing costs.
Gift funds + 6% seller helpHigher debt ratios are allowed with compensating factors, and a non-occupant co-borrower can help you qualify. FHA loans are also assumable — a future buyer can take over your rate.
Assumable loanFHA's flexibility is paid for with mortgage insurance. It comes in two pieces — and the honest part most lenders gloss over is how long it lasts. Here's the straight version.
1.75% of the loan amount, paid once at closing — almost always financed into the loan.
A yearly premium, split into your monthly payment — typically around 0.55% of the balance per year.
Less common on FHA, but if you can put 10% down, the annual MIP isn't permanent — it falls away after 11 years.
With the typical 3.5% down, annual MIP doesn't cancel on its own. Reaching 20% equity doesn't remove it — the only way off is to refinance.
Two questions every FHA buyer has: do I qualify, and how much can I borrow? Here's the plain version — your exact terms still depend on the full picture.
The standard FHA path. Solid odds of approval with steady income and a reasonable debt load.
Still eligible — FHA just asks for more down. Not every lender goes this low, but Beto knows the ones that do.
Below 500 you'll need to build a bit first. Beto can give you a short, specific plan to get over the line — often faster than you'd think.
FHA also allows a higher debt-to-income ratio than conventional — often into the high 40s or beyond with compensating factors — which is exactly why it works for buyers carrying student loans or a car note.
Limits are set county by county and rise for 2–4 unit properties. Buying a duplex or fourplex and living in one unit? Your limit goes up — and so does your buying power.
The two loans most buyers weigh against each other. General guidelines below — see the full breakdown on the Conventional page.
Neither loan is "better" across the board. FHA gets more people approved; conventional usually costs less long-term once you qualify. Beto runs both on your real numbers so the choice is obvious.
If any of these sound like you, FHA is worth running first. Mix of situations? That's most people — and exactly what the call is for.
You've had a rough patch, or you're early in building credit. FHA's 580 (and 500-with-10%-down) thresholds give you a real path most conventional lenders won't.
FHA's friendlier debt-to-income limits make room for the monthly obligations real people have — so a balance you're already managing doesn't disqualify you.
The entire 3.5% down can come from a gift, and a non-occupant co-borrower can help you qualify. FHA is unusually flexible about where the money comes from.
Use FHA to get in now, rebuild credit and equity, then refinance into conventional to shed the mortgage insurance. A smart on-ramp, not a dead end.
Alberto Moravia — known as Beto the Broker — is a licensed mortgage broker, TREC Certified Instructor, and proud San Antonio, TX resident who genuinely likes helping people who've been told "no" find a "yes" that actually works.
As an independent broker at Edge Home Finance LLC, Alberto shops across 100+ wholesale lenders — including the ones willing to work with lower scores and higher debt ratios — to find the FHA (or better) program that fits. He'll tell you straight whether the numbers work, and he speaks English, Spanish, and Portuguese.
A free 10-minute call with Beto. Bring your situation — your score, your down payment, your debts — and he'll tell you straight whether FHA gets you in, and whether it's the cheapest way to do it.