What is FHA Loan?
An FHA loan is a government-insured mortgage backed by the Federal Housing Administration, offering lower down payment and credit score requirements than many conventional loans.
An FHA loan is a mortgage insured by the Federal Housing Administration and issued by approved lenders. Borrowers often choose it because it allows down payments as low as three and a half percent and more flexible credit score requirements. It is commonly used by first-time homebuyers and those with limited savings. Watch for mortgage insurance premiums, which are required upfront and annually, and can make the loan more expensive over time. Also note property condition standards, loan limits that vary by county, and that you must occupy the home as your primary residence. Compare total costs with conventional options before deciding.
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