What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). These loans are designed to help first-time homebuyers and those with less-than-perfect credit achieve homeownership with more flexible qualifying requirements.
Key Benefits
- Low Down Payment: As little as 3.5% down payment
- Flexible Credit: Credit scores as low as 580 may qualify
- Gift Funds Allowed: Down payment can come from family gifts
- Competitive Rates: Often lower than conventional loans
- Assumable: Loans can be transferred to qualified buyers
Who Qualifies?
FHA loans are available to a wide range of borrowers, including:
- First-time homebuyers
- Buyers with limited savings for down payment
- Borrowers recovering from bankruptcy or foreclosure
- Those with moderate credit scores
FHA Loan Requirements
Minimum Credit Score
580 (3.5% down) or 500 (10% down)
Down Payment
3.5% minimum
Debt-to-Income Ratio
Up to 43% (may go higher)
Property Type
Primary residence only
