The Spokane mortgage guides
FHA Loans
Updated: August 2026
FHA Loans in Spokane, WA.3.5% Down Home Financing
3.5% down and a 580 credit score can put you in a house in Spokane Valley or the South Hill.
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FHA loans exist for exactly one reason: to make homeownership possible for buyers who don't have a large down payment sitting in the bank or a spotless credit file. If that's you, it's worth understanding how the program actually works before you start touring houses in Spokane Valley or the South Hill.
Who FHA is built for
I see three kinds of buyers use FHA most often in this market: first-time buyers who've been saving but haven't hit 20% down, Fairchild Air Force Base families moving on a tight timeline, and borrowers rebuilding credit after a rough stretch. FHA doesn't require a spotless history. A 580 credit score qualifies you for 3.5% down. Drop below that, down to 500, and FHA still works — you'll just need 10% down instead.
Compare that to a conventional loan, which typically wants a 620 minimum and often prices better once your score climbs past 680. If your credit is still recovering, FHA is usually the more forgiving door in.
What it costs, in real numbers
On a $400,000 home, 3.5% down is $14,000 out of pocket, plus closing costs. Your loan amount is $386,000. FHA then adds mortgage insurance in two pieces:
- Upfront mortgage insurance premium (UFMIP): 1.75% of the loan amount. On $386,000, that's about $6,755 — and it gets financed into the loan itself, not paid in cash at closing.
- Annual mortgage insurance premium (MIP): 0.55% per year, divided into your monthly payment. On that same $386,000 loan, figure roughly $177 a month.
That annual premium is the one thing people don't love about FHA — on most loans it sticks around for the life of the loan, not just until you hit 20% equity like conventional PMI. The way around it later is refinancing into a conventional loan once your equity and credit support it, which is a conversation worth having with me a year or two down the road, not something to solve on day one.
Loan limits in Spokane and Kootenai counties
As of 2026, the FHA loan limit for a single-family home is $541,287 in Spokane County, Washington, and it's the identical number in Kootenai County, Idaho — the full breakdown lives in the 2026 FHA loan limits for Spokane County explainer. That ceiling covers the overwhelming majority of homes for sale across South Hill, Kendall Yards, the Perry District, Spokane Valley, Liberty Lake, Cheney, Coeur d'Alene, Post Falls, and Hayden. If you're looking at something priced above that, we'd shift the conversation to a conventional or jumbo loan — I'll flag that early so you're not surprised mid-contract.
Down payment assistance stacks with FHA
This is the part a lot of buyers don't know about until someone tells them. Two programs regularly stack with FHA financing for eligible Spokane-area buyers:
- WSHFC Home Advantage — up to $15,000 toward your down payment for qualifying Washington borrowers.
- Spokane County HOME Program — up to $25,000 at 0% interest for eligible buyers purchasing in Spokane County.
Between the two, some first-time buyers end up putting very little of their own cash down at closing. Eligibility depends on income limits and a few other details specific to each program, so this is one of the first things I check when we talk — not something to guess at from a website.
How I run the numbers with you
I pull your credit, run the actual FHA payment (principal, interest, taxes, insurance, and MIP — not a rounded-off estimate), and check whether Home Advantage or the county HOME Program fits your situation. If a conventional or VA loan would put more money in your pocket instead, I'll tell you that too. My job is to get you into the right loan, not just an FHA loan because you asked about FHA.
If you're weighing FHA against putting more down on a conventional loan, or you're buying your first place and want the fuller picture, the links below cover both. And if you just want a straight answer on whether FHA makes sense for your specific numbers, call, text, or start a quote above.
On the record
Frequently asked questions.
What credit score do I need for an FHA loan in Spokane?
580 gets you 3.5% down. If your score is between 500 and 579, FHA still allows it, but you'll need 10% down instead of 3.5%. Most of the buyers I work with in Spokane County land in the 620-680 range, which qualifies for 3.5% down without any trouble.
How much down payment do I actually need?
3.5% of the purchase price if your credit score is 580 or higher. On a $400,000 home, that's $14,000. Combine that with one of the down payment assistance programs below and a lot of buyers put closer to zero down out of pocket.
What's the FHA loan limit in Spokane County right now?
$541,287 for a single-family home, and that's the same number for Kootenai County, Idaho. That covers the large majority of listings in Spokane, Spokane Valley, Cheney, Liberty Lake, Coeur d'Alene, and Post Falls. If you're shopping above that number, we'd look at a conventional or jumbo loan instead.
What is FHA mortgage insurance, and how much does it cost?
FHA charges two kinds. An upfront premium of 1.75% of the loan amount, which gets rolled into your loan rather than paid in cash at closing. Then an annual premium of 0.55%, split into your monthly payment. On a $380,000 loan, that's about $174 a month. Unlike conventional PMI, FHA mortgage insurance typically stays for the life of the loan unless you refinance out of it later.
Can I combine an FHA loan with down payment assistance?
Yes, and most first-time buyers I work with do exactly that. WSHFC's Home Advantage program offers up to $15,000 toward your down payment for eligible Washington borrowers. Spokane County also runs its own HOME Program, offering up to $25,000 at 0% interest for buyers who qualify. Both can be layered with FHA financing — I'll tell you upfront whether you're a fit for either one.
Does FHA work for a home near Fairchild Air Force Base?
It works well. FHA doesn't require military service, so Fairchild families and civilian buyers both qualify on the same terms. If you or your spouse are active duty or a veteran, it's worth comparing FHA against a VA loan side by side, since VA often beats FHA on upfront costs — I'll run both numbers so you can see which one actually saves you more.
Can I use an FHA loan to buy in Coeur d'Alene or Kootenai County instead of Spokane?
Yes. I'm licensed in both Washington and Idaho, and the FHA loan limit is the same $541,287 on both sides of the state line. The paperwork and approval process don't change whether you're buying in Spokane or Post Falls.
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