FHA loans in Georgia: requirements, down payment and how to apply
FHA is the workhorse of first-time buying in Georgia. Here is what it asks of you, what it asks of the house, and what it costs.
What an FHA loan is
An FHA loan is a mortgage made by a private lender and insured by the Federal Housing Administration, part of HUD. Because the government insures the lender against loss, lenders can accept smaller down payments and lower credit scores than they would on a conventional loan.
You do not have to be a first-time buyer to use FHA, but the home must be your primary residence.
The basic requirements
- Down payment: a minimum of 3.5% of the price for borrowers with qualifying credit. Lower scores may require more.
- Gift funds: the down payment can come from a documented gift from family and, in many cases, from approved down payment assistance.
- Credit: more forgiving than conventional, but lenders set their own minimums on top of FHA's.
- Debt-to-income: FHA allows higher ratios than many conventional loans when the rest of the file is strong. See debt-to-income ratio.
- Steady income and employment, documented the same way as any mortgage.
- Occupancy: you must move in and live there as your main home.
Loan limits in Georgia
FHA sets a maximum loan amount by county, and it changes every year. Most of metro Atlanta shares one limit; many rural Georgia counties have a lower one. Your lender will check the current limit for the county the house is in, or you can look it up on HUD's site. The limit caps the loan, not the price — you can buy above it with a larger down payment, though at that point a conventional loan often makes more sense.
Mortgage insurance: the real cost of FHA
Every FHA loan carries mortgage insurance premium (MIP): an upfront premium, usually rolled into the loan, plus an annual premium paid monthly. HUD sets the rates and has changed them over the years, so ask your lender for the current figures on your loan.
The important structural difference from conventional private mortgage insurance: with less than 10% down, FHA's annual premium generally lasts for the life of the loan. Many buyers use FHA to get in, then refinance into a conventional loan once they have built enough equity. PMI explained compares the two.
What FHA asks of the house
An FHA appraiser checks more than value. The home has to meet HUD's minimum property standards for safety and soundness — working utilities, a sound roof, no peeling paint on older homes, safe stairs and railings, no exposed wiring. Problems usually have to be repaired before closing, and the seller has to agree to that.
Condos are a special case: the whole condominium project generally needs FHA approval (or a single-unit approval) before you can use FHA to buy a unit in it. Check before you fall for a condo.
That makes FHA a weaker fit for a true fixer-upper — unless you use FHA's renovation version, the 203(k), which finances repairs into the loan.
FHA vs. conventional at a glance
That last row matters later: when you sell, an FHA loan at a low rate can be taken over by your buyer, which can make your home more attractive. Today, buyers can do the reverse — browse homes with assumable FHA loans.
| FHA | Conventional | |
|---|---|---|
| Minimum down | 3.5% with qualifying credit | As low as 3% on some programs |
| Credit flexibility | More forgiving | Rewards strong credit most |
| Mortgage insurance | Upfront + annual; often for the life of the loan with under 10% down | Monthly PMI with under 20% down; can be removed as equity grows |
| Property standards | Stricter on condition | Appraisal focuses mainly on value |
| Assumable | Yes, with servicer approval | Generally no |
How to apply
- Compare a few FHA-approved lenders — rates and fees vary, and FHA is offered by most mortgage lenders.
- Get pre-approved with your documents (see the mortgage document checklist).
- Tell your agent you are using FHA so offers are written with that in mind and condos are checked for approval.
- Use your due diligence period for a full inspection — the FHA appraisal is not an inspection.
Questions to ask an FHA lender
- What is the current upfront and annual mortgage insurance premium on my loan, and how long will the annual premium last?
- What credit score do you require for 3.5% down — your own minimum, not just FHA's?
- Are you approved for Georgia Dream or the local assistance program I am considering?
- What is the FHA loan limit for the county this house is in?
- How do you handle repairs the appraiser calls out — who orders the re-inspection, and how long does it add?
Common questions
What is the minimum down payment on an FHA loan?
3.5% of the purchase price for borrowers whose credit qualifies for that tier. Borrowers with lower scores may need to put down more.
Can I use down payment assistance with an FHA loan in Georgia?
Often, yes. Georgia Dream from the Georgia Department of Community Affairs and many local programs pair with FHA loans. Your lender must be approved for the specific program.
Can I buy a fixer-upper with an FHA loan?
Only if it meets HUD's property standards at closing, or if you use an FHA 203(k) renovation loan that finances the repairs.
What is the FHA loan limit in my Georgia county?
It is set by county and updated each year. Your lender can tell you the current figure, or look it up on HUD's website.
Does FHA mortgage insurance ever go away?
With 10% or more down, the annual premium ends after a set number of years under current rules; with less than 10% down it generally lasts for the life of the loan. Many owners refinance to remove it.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.