More Flexibility.
Lower Barrier to Entry.
Unlock the door to homeownership in the Lowcountry with down payments as low as 3.5%. Designed for first-time buyers and those with evolving credit profiles.
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. It is important to understand that the FHA doesn't lend you the money directly-instead, they provide insurance to lenders like Younited Lending.
This "safety net" allows us to offer more generous terms, lower down payments, and more flexible credit requirements than traditional conventional financing. That FHA insurance allows approved lenders to offer more flexible qualifying guidelines than many conventional loan options.
FHA Loan Requirements
| Requirement | FHA Standard |
|---|---|
| Minimum Down Payment | 3.5% (with 580+ credit score) |
| Credit Score | 500 - 579 (10% down) or 580+ (3.5% down) |
| Debt-to-Income (DTI) | Typically up to 43% (up to 50% in special cases) |
| Property Standards | Must meet FHA safety and habitability standards |
| Occupancy | Primary residence only |
The Realities of Mortgage Insurance (MIP)
To keep down payments low, FHA requires Mortgage Insurance Premiums (MIP). Unlike Conventional PMI, FHA insurance is mandatory regardless of your down payment amount.
1.75% of the loan amount, usually rolled into the total mortgage balance.
Paid monthly. If you put down less than 10%, it typically lasts for the life of the loan.
FHA vs. Conventional Financing
- 3.5% Down Payment
- Flexible Credit (580+)
- Gift Funds Allowed for Down Payment
- MIP Required (Life of Loan)
- 3% Down (for First-Time Buyers)
- Strict Credit (Usually 620+)
- PMI Cancellable at 20% Equity
- Lower Reserve Requirements
Charleston Metro FHA Loan Limits
| Property Units | Max Loan Amount (2026) |
|---|---|
| 1 Unit (Single Family) | $690,000 |
| 2 Units (Duplex) | $883,300 |
| 3 Units (Triplex) | $1,067,750 |
| 4 Units (Fourplex) | $1,326,950 |
FHA loan limits vary by county and are updated annually. Confirm the current limit before writing an offer.
Where Does the Down Payment Come From?
Traditional funds accumulated in your checking, savings, or investment accounts.
FHA allows 100% of your down payment and closing costs to be a gift from a relative.
Down payment assistance may be available through our National DPA network for qualifying buyers.
Frequently Asked Questions
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