FHA Loans are helpful for low-to-moderate income borrowers, because they may require a lower minimum down payment and credit scores than many conventional loans.
FHA Loans are insured by the Federal Housing Administration and issued by an FHA-approved lender.
- Require lower down payments and credit scores
- Good option for low income people or people with bad credit
- Stringent application requirements
- More limits than conventional loans
- Requires two types of mortgage insurance payments -- Upfront Mortgage Insurance Premium and an Annual Mortgage Insurance Premium (charged monthly)