What is it?
An FHA loan is a home loan backed by the Federal Housing Administration (a government agency). Because the government backs it, lenders can say yes to more people — including first-time buyers and people with lower credit scores.
Good fit when...
- First-time homebuyers
- People with a credit score as low as 580 (or even 500 with more down)
- Buyers who can only put down 3.5%
- People with more debt compared to their income
- Anyone who needs more flexible qualification rules
Probably not the right fit if...
- Buying an investment property or vacation home
- High-priced homes — FHA has loan limits by county
- People who want to stop paying mortgage insurance quickly (FHA keeps it longer)
- Veterans — a VA loan is almost always a better deal
Not sure if this is the right loan for you?
Take the loan finder quiz or book a free call. I will look at your full picture and tell you exactly what makes sense.