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FHA Mortgages

FHA Mortgages

FHA Loans feature favorable terms that could be exactly what you need to qualify for your new home. The Federal Housing Administration provides mortgage insurance on loans made by approved FHA lenders, like your mortgage lender in Indianapolis, First Option Mortgage.


  • Minimum credit score: 580
  • Minimum down payment: 3.5%
  • DTI: Max of 56.9%, Approval will vary based on customer circumstances
  • Gift funds: Allowed with stipulations
  • Seller Concessions: Up to 6%
  • Mortgage Insurance (MI): Required
  • Occupancy type: Primary only


  • Lower interest rates than other loan types
  • Lower credit score requirements
  • Higher DTI rations than conventional
  • Renovation loans (203K) are available
  • Monthly MI is typically lower than conventional
  • WDOs, water tests & sewer inspections not required


  • Up-front MI fee of 1.75% (rolled into the loan)
  • Unless 10% is put down, MI will last for the life of the loan
  • Any repairs noted on the appraisal are required to be fixed

Why Choose FHA?

FHA Loans are a wise choice if you have enough income, but lack the down payment required on a conventional loan. FHA also offers discounts on HUD homes to teachers, law enforcement, firefighters and EMTs through a Good Neighbor Next Door program.

We Are an FHA-Approved Lender

Due to our state-of-the-art technology and compliance measures, First Option was a quick approval for underwriting FHA Loans. You can trust our dedicated team to guide you through the FHA mortgage process step-by-step.

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Fill out the short form below to get started

and request a free rate quote.

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