Federal Housing Administration (FHA) loans

What is an FHA loan?

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.

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A popular loan for less-than-perfect credit

FHA loans are one of the easiest mortgages to qualify for because they don’t require a large down payment and they are more flexible with credit scores. FHA loans are widely used by first-time homebuyers and can require upfront and annual mortgage insurance premiums.

Who qualifies for FHA loans:

  • Homebuyers with lower credit scores
  • Individuals with low-to moderate-incomes
  • Borrowers who can afford down payments as low as 3.5%

Benefits of an FHA loan:

  • More flexible qualification requirements than other mortgage loans
  • Down payments as low as 3.5%
  • Credit scores as low as 600
  • Financing up to 96.5% of home purchase price

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.

Interested in learning more? Take the first steps with our pre-qualification calculator.

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