Understanding FHA Home Loans
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.
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