A government-backed mortgage insured by the Federal Housing Administration, with flexible credit and down payment requirements.
Full Definition
FHA loans are mortgages insured by the Federal Housing Administration, a division of HUD. Because the government backstops these loans, lenders can offer them to borrowers with credit scores as low as 580 and down payments as low as 3.5%. Borrowers with scores between 500–579 may qualify with a 10% down payment. FHA loans come with mandatory mortgage insurance premiums (MIP) — both upfront and annual — which add to the cost. They're popular with first-time buyers and those rebuilding credit after financial setbacks.
Related Terms
Whether you're buying a home or building a mortgage career, Lend Loft has the tools, training, and licensed support to get you there.