FHA loans are insured by the Federal Housing Administration and are built to open the door for buyers with limited savings or a credit history that is still growing. Down payments can start low, and guidelines are more forgiving than many conventional programs.
Highlights
- Low minimum down payment
- More flexible credit guidelines
- Gift funds for down payment are commonly allowed
- Available for many property types you will live in
Keep in mind
- Mortgage insurance is required (upfront and monthly)
- Loan limits apply by county
Who it suits
First-time buyers and anyone rebuilding credit who wants to buy with less cash up front.
Eligibility, rates and terms vary by borrower, property and state.