A Federal Housing Administration (FHA) loan is a government-backed mortgage with more flexible lending requirements than those for conventional loans. FHA loans have historically allowed buyers to borrow money for the purchase of a home that they may not otherwise be able to afford.
Available as a 15 or 30 year fixed rate loan
3.5% down payment required (may be gift funds)
Up-front Mortgage Insurance Premium can be financed into the loan or paid at closing
Owner occupied, one unit, primary residence (condos must be FHA approved)
Seller can contribute up to 6% financing concession
Minimum credit score of 640
Minimum loan amount of $50,000 if credit score is below 660
Non-occupant co-borrowers allowed
No income limitations
Maximum loan amounts based on county as set by FHA
Subject to credit approval. No manufactured homes are allowed.