FHA Loans
- Federal Housing Administration (FHA) loans are federally backed mortgages designed for homeowners who may have lower-than-average credit scores.
- FHA loans require a lower minimum down payment and a lower credit score than many conventional loans do.
- you’ll need to make a down payment of just 3.5%
- You’ll need a credit score of at least 580 to qualify
- If your credit score falls between 500 and 579, you can still get an FHA loan as long as you can make a 10% down payment.
- Federal Housing Administration loans are issued by FHA-approved banks and lending institutions; these institutions will evaluate your qualifications for the loan.
- In order to secure the guarantee of the FHA, borrowers that qualify for an FHA loan are also required to purchase mortgage insurance, and premium payments are made to FHA.
- you will make annual MIP payments for either 11 years or the life of the loan, depending on the length of the loan and the LTV.