FHA Loan
An FHA loan, also known as a Federal Housing Administration loan, is a type of mortgage loan that is insured by the FHA. This loan program is designed to assist homebuyers, particularly those with low to moderate incomes, in obtaining affordable financing for their home purchase.
Overall, an FHA loan is a popular choice for homebuyers who may not qualify for a conventional mortgage or those looking for more flexibility in their loan terms.
Here are some key characteristics of conventional loans:
Credit Requirements
580 or higher.
Down Payment
It can be as low as 3.5% of the home's purchase price.
Terms and Interest Rates
FHA loans offer fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs). With an FRM, the interest rate remains the same throughout the loan term.
Highlights:
Mortgage Insurance
Seller Contributions
Flexible Debt-to-Income Ratio
Streamline Refinance
Property Standards