An FHA loan is a government-insured mortgage backed by the Federal Housing Administration, created in 1934 to help more people become homeowners. These loans are easier to qualify for than conventional mortgages, especially for those with lower credit scores or limited savings.
FHA loans require a minimum down payment of 3.5%, and borrowers can qualify with credit scores as low as 500. While borrowers must pay mortgage insurance, this allows lenders to approve riskier applicants.
Closing costs range from 6% to 8%, and funds to close can come from savings, gifts, grants, or seller contributions.
Though they involve more paperwork and costs, FHA loans offer a path to homeownership for those who might not otherwise qualify.
Borrowers with credit scores as low as 500 may qualify, making homeownership accessible to those with less-than-perfect credit.
Buyers can put down as little as 3.5%, reducing the initial financial barrier to purchasing a home.
FHA loans often have lower upfront fees, and some costs can be negotiated or paid by the seller.
The FHA 203(k) loan allows you to buy and renovate a home with one convenient loan.
Great option for both first-time homebuyers and those purchasing a home again.
FHA loans can be transferred to a qualified buyer,
which can make your home more attractive when selling.
Helping everyday people achieve homeownership with smart, affordable loan solutions backed by experience, care, and top-tier lenders.
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