FHA Loans


An FHA Loan is a mortgage insured by the Federal Housing Administration. With a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, FHA loans are popular among first-time home buyers who have little savings or have credit challenges. Only an FHA-approved lender can issue an FHA-insured loan. FHA loans can be used to buy or refinance single-family houses, two- to four-unit multifamily homes, condominiums, and certain manufactured homes. FHA loan limits in 2021 range from $356362 to $822,375 depending on county. You can visit the HUD’s website to find the FHA loan limit in any county.

FHA loans highlight a particular set of benefits:
Lower credit score requirements than Conventional loans
Potentially lower Mortgage Insurance payments than Conventional loans
More liberal rules regarding gifts of down payment money
Does require an specific FHA appraisal separate from a home inspection