An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially for first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. It’s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

GET IN TOUCH!