What is an FHA loan?
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An FHA loan is insured by the Federal Housing Administration (FHA) and issued by an FHA approved lender. Since these loans were designed for low-to-moderate income borrowers, they offer options to borrowers with lower minimum down payments and credit scores. While FHA loans are popular with first-time homebuyers, they are available to anyone who qualifies.
Who qualifies for FHA loans?
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Homebuyers with lower credit scores
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Individuals with low-to moderate-incomes
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Borrowers who would prefer to make a lower down payment
Benefits of an FHA loan:
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More flexible qualification requirements than other home loan types
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Down payments as low as 3.5%
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Credit scores as low as 540
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Financing up to 96.5% of home purchase price
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Credit scores under 580 require a minimum of a 10% down payment.
All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
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