FHA Loan

An FHA loan is a type of government-backed mortgage designed to make homeownership more accessible, especially for those with less-than-perfect credit or limited savings for a down payment. It offers lower down payment requirements, often as low as 3.5%, and has more flexible credit guidelines compared to conventional loans. Because it's insured by the Federal Housing Administration, lenders are more willing to approve applicants who might not qualify for traditional mortgages. However, borrowers pay mortgage insurance premiums (MIP) to protect the lender, which can increase overall monthly costs.