Buying a home isn’t always easy—especially when it comes to qualifying for a mortgage. FHA loans, backed by the Federal Housing Administration, offer more flexible requirements to help more people become homeowners.
What Is an FHA Loan?
An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA). These loans are provided by approved lenders but are backed by the government, which helps reduce the lender's risk. This government backing makes it easier for more buyers to qualify.
Why Consider an FHA Loan?
FHA loans may be helpful for:Buyers with limited savings for a down paymentIndividuals with less-than-perfect creditFirst-time homebuyers looking for a more accessible mortgage optionThey typically offer:Lower down payment options (as low as 3.5%, depending on qualifications)More flexible credit criteriaFixed-rate and adjustable-rate options