What is an FHA Loan?
An FHA Loan is a Loan backed by the Federal Housing Administration. Although FHA Loans tend to have more restrictions than Conventional Loans (certain homes may not qualify at all for an FHA Loan; townhomes, condos, and properties that need renovation will need prior FHA approval), they’re a good option for buyers with limited savings or lower credit scores. If you’re considering an FHA Loan, remember that they:
- Typically require a 3.5% down payment, but 100% financing is available
- Require a 580+ credit score
- Require the buyer to pay FHA mortgage insurance (regardless of down payment size)
If you think an FHA Loan may be right for you, click here to apply now! In the meantime, if you have any questions about FHA Loans, please don’t hesitate to reach out to one of our Loan Officers for help.
If you’d like to further explore your options outside of an FHA Loan, you can also look into Conventional Loans, USDA Loans, VA Loans, or even Down Payment Assistance Options.