How do I apply for an FHA loan online?

Because of the lower qualifications of the FHA loans, they give mortgage opportunities to people with low income or low credit and people who may be first-time homebuyers.
Your credit score doesn’t haven’t to be high for an FHA loan. Some mortgage lenders out there will underwrite an FHA loan to someone with a 580 credit score. Even those who lost their home to foreclosure, short sale or divorce or went bankrupt, can qualify for FHA loans after a certain amount of time re-establishing credit. FHA also allows buyers to put down only a 3.5 percent down payment, plus the entire down payment and closing costs can come from a gift from family or friends. With conventional loans, lenders require you to have your own funds saved up for these costs. If you need a co-signer for your loan, FHA provides that opportunity, too. FHA allows a non-occupying co-borrower, like a parent, to go on the loan with you.

Even though the FHA loan makes buying homes easier for people with lower credit, there are some downsides. If you are relying on an FHA loan, there will be limits of how much you can borrow depending on where the house is that you want to buy. The government is backing the FHA loan, even though it doesn’t provide the loan. But to protect the government, a Mortgage Insurance Premium (MIP) is charged each and every month of the loan. This insurance protects the lender in the event of default and is required by the Department of Housing and Urban Development (HUD), which manages the program.

Because the FHA is not a lender, but rather an insurer, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan. 

As for applying online you can find different lenders online that have web pages set-up to allow people to apply for their FHA loan online.

For example Lending Tree has this page set-up : 

Quicken Loans also has this web page set-up for people to apply online: 

And not all lenders have online applications. After looking online, look into lenders in your area that are FHA approved and that might have better rates. Costs, services and underwriting standards will vary among lenders or mortgage brokers, so it’s important for borrowers to shop around.

- Moore