FHA Loan | Adam Terasinski

FHA Loan

Flexible home financing for buyers who need more forgiving credit and down payment rules.

How an FHA Loan Works

FHA loans are insured by the Federal Housing Administration and are built for buyers who are ready to own a home but don’t fit the tighter box of conventional guidelines.

FHA can be a strong fit if you have a thinner credit file, a few older credit hiccups, or less money saved for a down payment. The tradeoff is mortgage insurance that sticks around longer than many conventional options.

Who This Loan Is Usually Best For

  • First-time buyers who need more flexible credit or debt-to-income limits
  • Borrowers rebuilding after past late payments, collections, or life events
  • Buyers in the Lincoln area with solid income but smaller savings
When FHA shines FHA is often the “yes” when conventional says “not yet.” It’s a stepping-stone loan: get into the home now, and we can look at refinancing into conventional later if it lowers your long-term cost.

Key Benefits

  • Down payment as low as 3.5% for qualifying borrowers
  • More forgiving on credit history and past blemishes than conventional
  • Higher allowable debt-to-income ratios in many cases
  • Fixed-rate options that keep your monthly principal-and-interest consistent
  • Gift funds can often be used toward down payment and closing costs (when documented correctly)

Important Tradeoffs to Understand

  • Upfront and monthly mortgage insurance are required on FHA loans
  • Mortgage insurance may remain for the life of the loan, depending on terms
  • Homes must meet FHA minimum property and safety standards
  • Loan limits apply and may be lower than what some higher-end buyers need
See If FHA Fits Your Scenario
We’ll compare FHA and conventional side-by-side using your actual numbers, not averages, so you can see which one actually wins over 5–10 years.
Is FHA only for first-time home buyers?

No. You don’t have to be a first-time buyer to use FHA. The home just needs to be your primary residence, and you’ll still need to meet all FHA and lender guidelines.

Can I buy a home that needs work with FHA?

Standard FHA requires the home to meet safety and livability standards. There are FHA renovation options, but they follow specific rules and timelines. We can talk about whether your property and plans fit that box.

How long do I keep FHA mortgage insurance?

It depends on your down payment and term. In some setups, it lasts for the life of the loan. In others, it can drop off. Many people eventually refinance into a conventional loan once equity and credit improve to shed the FHA mortgage insurance.

*FHA loans are insured by the Federal Housing Administration and are subject to FHA and investor guidelines. All approvals depend on a full review of credit, income, assets, and property. This content is for general educational purposes only and is not a commitment to lend or an offer of credit.*