FHA Loans

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Designed specifically to help low-to-moderate income borrowers, FHA loans require lower minimum credit scores and down payments than many conventional loans.

Because the loan is insured by the government, lenders can offer more favorable terms to borrowers who might not otherwise qualify for a conventional mortgage, making it an incredibly popular option for first-time homebuyers.

Best For Which Buyers?

• First-Time Buyers: Ideal for those who haven't saved a large down payment.
• Lower Credit Scores: Borrowers with credit scores starting as low as 580 can qualify for maximum financing.
• Higher Debt-to-Income: FHA allows for higher DTI ratios compared to conventional loans.

Key Benefits

• • Down payments as low as 3.5%
• • More lenient credit requirements
• • Seller can contribute up to 6% towards closing costs
• • Assumable loans (can be transferred to a new buyer)

What is the minimum down payment for an FHA loan?

Do FHA loans require mortgage insurance?

Can I use gift funds for the down payment?