An FHA purchase moves through a fixed sequence: credit review, budget, funds, pre-approval, property search, rate comparison, and underwriting through closing. A mortgage checklist for buyers works best when it follows that order, because some problems, such as a low score or undocumented cash, take months to fix while others take a phone call. The seven strategies below are sequenced the way a purchase unfolds, with dollar math where it helps. Duane Buziak, a mortgage broker (not a lender) with access to 500+ wholesale lenders, built them for first-time and low-down-payment buyers. Figures that change are marked with a verification note. Confirm them at hud.gov before you act.
1. Check your credit profile against FHA tiers
HUD’s published guidelines allow a 3.5% down payment with a 580 score or higher, and a 10% down payment for scores from 500 to 579. That is HUD’s floor, not necessarily the floor of the company funding your loan. Many lenders apply overlays, which are stricter internal requirements layered on top of HUD rules, and some will not go below 620 or higher. A score that qualifies in theory can still be declined in practice.
Illustration: a buyer with a 575 score finds a collection on the report that is disputed and wrong. Once it is corrected and credit card balances are paid down, the score rises above 580, and the required down payment drops from 10% to 3.5%. On a $300,000 home, that is the difference between $30,000 and $10,500.
- Pull your free reports from all three bureaus at annualcreditreport.com.
- Dispute errors in writing and keep copies of every response.
- Pay revolving balances down, starting with the cards closest to their limits.
- Do not open new accounts or co-sign anything.
- Ask a broker to run your scenario against current overlays.
Duane Buziak uses a NoTouch Credit Pull, a soft pull with no hard inquiry, so you can see where you stand without a score penalty. The common mistake is applying with several companies to “see who says yes,” which stacks hard inquiries for no benefit. Measure your progress by tracking each bureau’s score separately and comparing your middle score to the stated minimum for the program you are targeting.
2. Calculate DTI and a real monthly budget
Debt-to-income ratio (DTI) compares monthly obligations to gross monthly income. The front-end ratio counts only housing costs. The back-end ratio adds car loans, student loans, card minimums, and other debts. Traditional FHA benchmarks are about 31% front-end and 43% back-end, though automated underwriting can approve higher ratios with compensating factors. Approval limits tell you what a lender may allow, not what you can comfortably carry.
A worked illustration
Suppose a $300,000 purchase in Henrico County with 3.5% down. The down payment is $10,500, leaving a $289,500 base loan. The upfront mortgage insurance premium (UFMIP) is 1.75% of the base loan, or $5,066.25, and can be financed, making the total loan $294,566.25. At an assumed 6.25% rate for 30 years (illustrative only, not a quote), principal and interest is about $1,814. Annual MIP at 0.55% of the base loan adds about $133 a month. That tier applies to a 30-year term, a base loan at or under $726,200, and a down payment under 5%, per HUD guidance (Handbook 4000.1 and Mortgagee Letter 2023-05, confirm current tiers at hud.gov). Property tax at Henrico’s $0.85 per $100 (verify at henrico.us), assuming an assessed value of $300,000, is $2,550 a year, or about $213 a month. Add $125 for illustrative insurance. The total is roughly $2,284 a month.
With $7,000 in gross monthly income and $450 in other debts, the front-end ratio is about 33% and the back-end about 39%. The mistake to avoid is budgeting only principal and interest, then forgetting MIP, taxes, insurance, and HOA dues. Insurance and tax costs also vary by state in Duane Buziak’s licensed markets of VA, FL, TN, GA, and DC, so use local numbers. Measure success by a back-end DTI under about 43% and a payment that leaves your savings intact.
3. Plan the down payment, closing costs, and gift funds
Lead with the mistake: a buyer deposits a $10,000 cash gift into checking three weeks before applying, and underwriting asks for the donor’s statements, the transfer trail, and a letter explaining the deposit. Closing slips while everyone collects paper. Unsourced deposits are among the most common causes of FHA documentation delays.
The 3.5% minimum investment can come from savings, a documented gift from an acceptable donor such as a family member, or approved assistance programs. Closing costs are separate. A seller concession is money the seller agrees to put toward your closing costs, and FHA caps it at 6% of the sales price. Combining a documented gift with a negotiated concession can create a no-out-of-pocket closing option, depending on the price, the costs, and what the seller accepts.
Illustration: a buyer receives a $10,000 family gift. The donor signs a gift letter stating no repayment is expected, the transfer is documented from the donor’s account, and the offer asks the seller to contribute toward costs.
- Ask for an estimate of cash to close, covering down payment, prepaid items, and fees.
- Collect two months of bank statements for every account you will use.
- Get the gift letter and the donor’s transfer documentation before the money moves.
- Write the concession request into the offer, with your agent’s help.
- Keep reserves beyond what closing requires.
Measure total cash needed against verified, documented funds available. Any gap in that comparison is the number to close before you make an offer.
4. Get full pre-approval, not prequalification
A prequalification is a rough estimate built on self-reported numbers, often generated online in minutes. A pre-approval means a loan professional has reviewed your documents and credit and run the file through underwriting criteria. Sellers and agents know the difference, and it shows in how offers are ranked.
Illustration: two offers arrive at the same price. One buyer attaches a dated pre-approval letter backed by verified income and assets. The other has an online prequalification. The seller takes the documented offer because it carries less risk of falling apart.
- Gather recent pay stubs, W-2s, tax returns, bank statements, and a government ID.
- Submit them to a broker for review rather than entering numbers into a form.
- Review any conditions the underwriter lists, such as a letter of explanation or an additional statement.
- Request a dated letter that states the loan type and amount.
Self-employed buyers should expect to supply more, typically two years of returns. The mistake to avoid is treating a prequalification as a commitment and house-hunting on unverified numbers, then discovering a problem after you have fallen for a house. Because Duane Buziak shops 500+ wholesale lenders as a broker, a pre-approval review can also show which lender’s guidelines fit your file best, which matters if one has an overlay that hurts you.
Measure the number of open underwriting conditions when you write an offer, with fewer being better, and confirm the letter is dated within the window agents expect.
5. Match your price range to FHA limits and property rules
FHA loan limits are set by county each year, and your target price needs to fit under your county’s limit for the unit type you are buying. HUD publishes them annually (the 2026 limits were announced in HUD Mortgagee Letter 2025-23). Look yours up at the HUD FHA mortgage limits lookup and confirm the figure is current. The common error is relying on last year’s number.
The property has to qualify as well. FHA appraisals check minimum property standards for safety, soundness, and security. Peeling paint in older homes, damaged roofing, missing handrails, and exposed wiring are typical flags, and repairs are generally required before closing. You must also plan to occupy the home as your primary residence.
Illustration: a buyer loves a home with a failing roof but learns the FHA appraisal would likely require repair before closing. The seller will not pay for it, so the buyer drops the house and targets move-in-ready homes, avoiding a deal that would die at the appraisal.
- Look up the county limit at hud.gov and note the date you checked.
- Tell your agent you are using FHA so they screen listings for condition.
- Ask about roof age, heating, water damage, and any unpermitted work.
- Confirm the condo or planned development is eligible if you are buying in one.
Rules differ in a few details across VA, FL, TN, GA, and DC, such as flood zones in Florida, so confirm locally. Measure list price plus estimated costs against the county limit, and score each property for appraisal readiness before you tour it a second time.
6. Compare Loan Estimates across lenders and brokers
Within three business days of a complete application, you receive a Loan Estimate, a standardized three-page form showing rate, fees, and projected payments. Because the form is the same everywhere, you can compare offers line by line. The CFPB’s Loan Estimate guide explains each section.
Illustration: a buyer collects three Loan Estimates for the same scenario. One has the lowest rate but the highest origination charges. Another has a slightly higher rate and almost no origination fee. The buyer compares Section A (origination charges) and the APR, then estimates which costs less over the number of years they expect to own the home.
- Request all estimates the same day, with identical price, down payment, credit score, and loan term.
- Compare the interest rate, the APR, and every line in Section A.
- Ask each provider how long the rate lock lasts and what an extension costs.
- Check whether points are included and whether the rate depends on paying them.
The mistake is comparing only the advertised rate. A low rate with heavy fees or a short lock can cost more than a plain quote. This is where the Dare to Compare challenge applies: bring any Loan Estimate to Duane Buziak, who compares it against pricing from across 500+ wholesale lenders instead of a single shelf. Measure APR and total closing costs across three estimates built on identical assumptions.
7. Protect the file from underwriting to closing
Underwriting does not end at approval. Lenders typically re-verify credit and employment before funding, so a change in your finances can undo weeks of work.
Illustration: a buyer finances new furniture two weeks before closing. The re-pulled credit shows the new payment, DTI rises, and the closing is delayed while the file is reworked. Waiting until after closing would have avoided it entirely.
- Pause new credit. No cars, cards, or store financing until the keys are yours.
- Answer conditions within 24 hours. Slow responses are a leading reason closing dates slip.
- Keep income steady. Avoid changing jobs or large unexplained deposits and withdrawals.
- Review the Closing Disclosure. You must receive it at least three business days before closing. Compare it with your Loan Estimate using the CFPB’s Closing Disclosure guide, since some fees are allowed to change only within set tolerances.
- Verify wire instructions by phone. Use a number you already know, never one from an email. Wire fraud targets homebuyers in the final days.
Do the final walkthrough before signing, and check that agreed repairs are complete. Measure success by conditions cleared on time, a closing date that held, and a Closing Disclosure that matches the Loan Estimate within allowed tolerances.
FHA checklist questions buyers ask most
Do I need 20% down for an FHA loan?
No. With a 580 score or higher, HUD guidelines allow 3.5% down. Scores from 500 to 579 generally require 10% down, and many companies set higher minimums.
Is 580 the lowest score I can use?
It is HUD’s threshold for 3.5% down, but lenders can set stricter overlays. A broker can match your score to guidelines that fit.
Does FHA mortgage insurance go away on its own?
Not usually. With less than 10% down, annual MIP generally lasts the life of the loan under HUD Handbook 4000.1. Refinancing is a common way to remove it.
What is UFMIP?
The upfront mortgage insurance premium is 1.75% of the base loan amount. It can be financed into the loan.
Can a gift cover my down payment?
Yes, from an acceptable donor with a signed gift letter and documented transfer of funds.
How much can a seller contribute?
FHA caps seller concessions at 6% of the sales price. They can offset closing costs but not the required down payment.
What is the difference between prequalification and pre-approval?
Prequalification uses self-reported numbers. Pre-approval is based on verified documents and credit review, which is why sellers trust it more.
Does checking my credit with Duane Buziak hurt my score?
No. The NoTouch Credit Pull is a soft pull with no hard inquiry, so you can review your options first.
Start with items 1 through 3 this week
Credit, budget, and funds take the longest to repair, so begin there. A disputed account can take weeks to resolve, and a gift needs to be seasoned and documented before you apply. Pre-approval comes next, once those numbers are clean, then property rules, rate comparison, and file protection.
Schedule your free consultation today with FHA Mortgages by Duane Buziak and have your personalized FHA checklist reviewed. Ready to take the first step toward homeownership with an FHA loan tailored to your needs? Discover how our award-winning team can help you navigate the path to your new home with competitive rates and expert guidance. As a broker with 500+ wholesale lender access, a NoTouch Credit Pull, the Dare to Compare pricing challenge, and no-out-of-pocket closing options where your scenario allows, Duane Buziak shops your file instead of selling you one product. Call 804-212-8663 or visit 4860 Cox Rd, Glen Allen, VA 23060. Coast2Coast Mortgage LLC, NMLS #1110647, licensed in VA, FL, TN, GA, and DC.
