Understanding FHA Home Loans

By Investopedia. May 7th 2016

For many first-time homebuyers, a Federal Housing Authority (FHA)-backed mortgage makes buying a home easier, or possible, thanks to less-rigid borrower requirements:

  • A low minimum down payment (currently about 3%)
  • Reasonable credit expectations
  • More flexible income requirements

Perhaps more so than for conventional loans, providers of FHA loans are willing to look at the whole picture rather than dismissing a borrower for falling short on a particular criterion.

Still, not everyone can qualify for an FHA loan, and when applying for a mortgage, it can be frustrating not to understand how lenders determine your eligibility for a particular loan program. In this article, we'll discuss some of the basic requirements for FHA financing to help make the complex mortgage application and approval process less harrowing.

Read more here at Investopedia.com.

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