FHA Loans

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA). FHA loans are designed for low to moderate income borrowers who are unable to make a large down payment. 

FHA loans allow the borrower to borrow up to 96.5% of the value of the home. Down payment requirement as low as 3.5% can come from a gift or a grant. Since FHA loans have the lower down payment requirements and more lenient credit restrictions, these make the FHA loans great options for borrowers who are first-time home buyers, or those who have average credit scores, or are rebuilding their credit. Because the loans are backed by the FHA, lenders are able to offer better deals than they would otherwise.