FHA Section 245(a) Loan
Flexible payment options for borrowers expecting income growth.
How it works
Section 245(a) covers FHA's graduated-payment and growing-equity mortgages, structuring early payments lower (or rising faster) to match an expected income trajectory.
Key things to know
- Minimum 3.5% down with a 580+ credit score (10% down for 500-579).
- Loan amounts are capped by your county FHA limit — $541,287 floor up to $1,249,125 in high-cost areas.
- FHA mortgage insurance applies; budget the 1.75% upfront premium plus annual MIP.
- The home must be your primary residence and meet FHA's minimum property standards.
Program rules are set by HUD and updated periodically. Join the free notification program to hear about changes to the FHA Section 245(a) Loan first.
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Frequently Asked Questions
- What is the FHA Section 245(a) Loan?
- Section 245(a) covers FHA's graduated-payment and growing-equity mortgages, structuring early payments lower (or rising faster) to match an expected income trajectory.
- What credit score and down payment are required?
- Like other FHA loans, 580+ qualifies for 3.5% down; 500-579 requires 10% down.