FHA loans in Spokane.

What is an FHA loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD). The insurance is designed to give lenders more flexibility on credit qualification and lower the upfront barrier to buying a home. Every FHA loan includes a mortgage insurance premium, a required structural feature of the program.

The FHA doesn't lend money directly. It insures the portion of risk a private lender takes on, which is what lets a lender like Movement Mortgage extend more flexible credit standards than many conventional programs allow. That flexibility is the main reason FHA loans are popular with first-time buyers and buyers rebuilding their credit.

Every FHA loan still goes through full underwriting: income, credit history, and the property itself are all reviewed, and the home has to meet FHA's own appraisal standards. The mortgage insurance premium is a required part of every FHA loan, not something a borrower can opt out of, and it exists specifically to fund the insurance that makes the flexible qualification possible.

Source: FHA and Housing Resources (hud.gov) (as of July 2026)

What credit score do I need for an FHA loan?

FHA loans are known for flexible credit qualification, but there isn't one universal minimum score that applies to every borrower. The exact threshold depends on the lender's own guidelines and how your full financial picture looks together: credit history, income, and existing debt. Publishing a single number here would oversimplify a decision that's actually based on your whole file.

Two borrowers with the same score can qualify very differently once a lender looks at income stability, other debt, and how the rest of the file holds together. That's true across FHA and every other loan type, which is why a credit score alone rarely tells the full story.

Instead of guessing at a number, the more useful step is a short conversation about where you actually stand. Teddy reviews your full picture, credit, income, and goals, before telling you what's realistic, and the FAQ page covers more of the questions buyers ask before that first call.

FHA or conventional: which fits a first-time buyer?

FHA and conventional loans fit different situations, and the right one depends on your credit profile and how each program's mortgage insurance is structured. FHA tends to offer more flexible credit qualification, while conventional loans typically ask for a stronger credit and income profile in exchange for different mortgage insurance rules. Neither is universally better, it comes down to your specific financial profile.

The biggest structural difference is mortgage insurance. FHA mortgage insurance is a required feature of the program and typically stays in place for the life of the loan. Conventional loans use private mortgage insurance in some cases, and that insurance can be removed once enough equity has built up in the home, a flexibility FHA does not offer in the same way.

FHA loans also apply their own property standards during the appraisal, which can matter for older homes common around Spokane. Upfront cost profiles differ between the two programs as well, though the details depend on your lender and loan scenario rather than a flat rule. The clearest way to compare is side by side: the conventional loans page walks through the other side of this comparison, and the first-time buyer guide covers how either program fits into a first purchase.

Can I pair an FHA loan with Washington down payment assistance?

Yes. Washington State Housing Finance Commission (WSHFC) down payment assistance programs are commonly paired with an FHA first mortgage, which is one of the more common combinations for first-time buyers in Spokane. WSHFC programs require a commission-sponsored homebuyer education seminar before closing, regardless of which first mortgage you pair it with.

WSHFC runs several statewide programs, including Home Advantage and House Key Opportunity, that are structured as assistance layered on top of a first mortgage. FHA is a common pairing because both are built around flexible qualification, though eligibility and program details depend on your situation and change periodically. The down payment assistance page covers how these programs work in more depth.

The homebuyer education seminar isn't a formality to skip past; it's a requirement built into every WSHFC program. Teddy can help explain where that requirement fits in the loan process and how to find an approved class. See the homebuyer education page for what the class covers and how to get it done.