What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. It's incredibly popular, especially among first-time homebuyers, because it allows borrowers to finance homes with down payments as low as 3.5% and is more forgiving of lower credit scores.
Because the government backs these loans, lenders can offer competitive interest rates to borrowers who might not qualify for traditional conventional financing.
Who Is It For?
- First-time homebuyers
- Borrowers with limited savings for a down payment
- Buyers working on rebuilding their credit
Key Requirements
- Min. Credit Score 580
- Min. Down Payment 3.5%
- Occupancy Primary Residence Only
- Insurance (MIP) Required
Key Benefits
Low Down Payment
Start building equity with just 3.5% down on the purchase price.
Flexible Credit
Qualify with a credit score as low as 580 (or sometimes lower with a larger down payment).
Seller Contributions
Sellers can pay up to 6% of the purchase price toward your closing costs.
Competitive Rates
Government backing means lenders can offer highly competitive interest rates.