FHA Loan
Government-backed loan
- Loans that are offered by the Federal Housing Administration.
- The FHA itself does not originate loans but rather insures them, which reduces the risk for lenders, making it easier for borrowers to qualify for a mortgage.
- Due to it being backed by the government, even if the credit requirements are more flexible and the downpayment is usually low, you still have access to a broad array of lenders.
Requirements
- Low-to-Mid Credit Score
- Stable source of Income and verifiable employment history
- Low-to-Mid Debt-to-Income (DTI) Ratio
- Mortgage Insurance Premium
- Enough funds to cover downpayment
- Prospective Property must meet certain criteria and must only be intended for primary residence purposes