FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development. If you choose an FHA loan, you pay for mortgage insurance which protects the lender in the event of a default.
FHA loans are an attractive option, especially for first-time homeowners:
- You dont have to have perfect credit
- Generally easier to qualify for than conventional loans.
- FHA Loans require a much lower down payment that most other loan types.
- Cannot exceed statutory loan limits.