An FHA loan is backed by the Federal Housing Administration, which lets lenders work with smaller down payments and more forgiving credit histories than a conventional loan usually allows. It is the reason a lot of first purchases happen at all. The trade is mortgage insurance, which you carry as part of the payment, so the right question is not whether FHA is cheaper but whether it gets you into the right home sooner.

Who it fits

This loan fits you if

  • Your down payment is closer to the minimum than to twenty percent
  • Your credit is still recovering, or it is thin because you are young
  • You are buying the home you will live in
  • You would rather buy now with insurance than wait two years without it
Minimum down payment

Three and a half percent at a 580 score or above

Who qualifies

Any buyer using the home as a primary residence, first purchase or fourth

Mortgage insurance

An upfront premium, usually financed, plus a monthly amount

Next step

Think FHA Loan might be the one

Let us confirm it against your actual numbers before you fall in love with a house.

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