FHA Loans

Insured by the Federal Housing Administration (FHA)

 

 

Loans insured by the FHA are intended for use by low- to moderate-income borrowers. They allow down payments as low as 3.5% and lower credit scores than conventional loans. FHA loans require payment of an upfront Mortgage Insurance Premium (which is usually financed) as well as a monthly mortgage insurance payment. Although FHA loans help borrowers who might not be able to obtain a conventional loan, one of the disadvantages is that the monthly mortgage insurance payment will, in most cases, last the entire life of the loan, even when the loan balance has been paid down over time.