Best for First-time buyers and anyone rebuilding credit or saving toward a down payment.
FHA loans are backed by the Federal Housing Administration, which lets lenders approve borrowers who might not qualify for conventional financing. They are one of the most popular programs for first-time homebuyers.
Because the government insures the loan, FHA allows down payments as low as 3.5% and more flexible credit and debt-to-income guidelines. FHA loans require mortgage insurance for most of the life of the loan, so we will show you side-by-side numbers against a conventional option.
Highlights
- Down payment as low as 3.5%
- More flexible credit guidelines
- Gift funds allowed for down payment and closing costs
- Streamline refinance option for existing FHA borrowers
Things to consider
- Upfront and monthly mortgage insurance premiums apply
- Property must be your primary residence
- Loan limits vary by county
Program descriptions are general and for education only. Guidelines, limits and eligibility change; your mortgage advisor will confirm what applies to you. Not a commitment to lend.