Federal Housing Administration Loans

If you have less than 10 to 20% to put down on a mortgage, consider an FHA mortgage loan. They're backed by the Federal Housing Administration, which sets requirements based on your credit score. As a rule of thumb, the lower your score, the higher your down payment. FHA loans typically allow buyers to borrow money for the purchase of a home they may not otherwise be able to afford.

Features & Benefits

• 96.5% loan-to-value ratio
• 3.5% down payment required (may be gift funds)
• Upfront 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
• Free prequalification