FHA Loan

An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make buying a home more accessible with a lower down payment and more flexible credit requirements than many conventional loans. It is especially popular with first-time buyers and with people using multi-family house hacking, where you live in one unit of a small multi-family property and rent out the others. FHA loans require mortgage insurance, and the down payment minimum, loan limits, and insurance terms are set by the program and can change, so confirm the current figures with an FHA-approved lender. Because the government backs the loan, lenders can offer terms that help buyers who might not qualify for conventional financing. The property must also meet certain condition and appraisal standards before the loan closes.