What is an FHA Loan?
An FHA Loan is a mortgage that’s insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers.
Who is an FHA Loan For?
An FHA Loan is often times is a popular choice for a first-time homebuyer. FHA loans require a lesser deposit than a conventional loan and can help keep costs low when purchasing a home.
What are the requirements of an FHA Loan?
FICO® score at least 620= 3.5% down payment.
MIP (Mortgage Insurance Premium) is required.
Debt-to-Income Ratio < 43%.
The home must be the borrower’s primary residence.
Borrower must have steady income and proof of employment.