An FHA loan is a mortgage loan insured by the Federal Housing Administration (FHA). These loans are designed to provide individuals with low-to-moderate income the opportunity to own a home.
FHA loans have smaller loan limits and accept lower credit scores compared to a conventional mortgage. However, borrowers are required to pay a mortgage insurance premium (MIP) on the loan, and the property must be appraised by an FHA-approved appraiser.
FHA Loans Offer:
- Low down payments, lower than most conventional loans
- Lower credit score requirements
- No prepayment penalties
FHA Loans are Ideal for:
- First-time home buyers
- Individuals with limited credit history
- Individuals buying a home within the maximum FHA loan limits
If you're looking to purchase a home and wondering if an FHA loan is the best option for you, we can help. Click the link below to contact our mortgage department.