What it is
An FHA loan is a mortgage insured by the Federal Housing Administration. The insurance lets lenders approve borrowers with smaller down payments and thinner or recovering credit.
How it works
Down payments start at 3.5%. Credit requirements are more flexible than conventional, and gift funds from family can cover the down payment. FHA loans carry a mortgage insurance premium — part upfront, part monthly.
Who it fits
First-time buyers, buyers rebuilding credit, and anyone whose down payment is the hurdle. Also strong for moving up when cash is tight.
What you'll need
Proof of income, two years of job history (gaps can be explained), and the property must be your primary residence and pass an FHA appraisal.
Good to know
Already have an FHA loan? An FHA Streamline refinance can lower the payment with minimal paperwork — often no appraisal and no income re-verification.
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Talk to the DeskGeneral education, not advice for your specific situation. Every file is different — talk to a licensed professional before making decisions.