What is an FHA Loan and Who Can Qualify?

The Federal Housing Administration (FHA) provides mortgage insurance on loans throughout the United States to first time buyers, seniors, and homeowners interested in refinancing their mortgage.

Loans from the FHA have been helping people become homeowners for nearly 100 years, with down payments as low as 3.5% of the purchase price. Seniors can take advantage of their reverse mortgage program to convert a portion of their home equity into cash as well. Borrowers still must pay mortgage insurance premiums, which protects the lender in the scenario where the borrower defaults on payment.

It’s easy to qualify for an FHA loan. Applicants must have a minimum FICO score of 580 to qualify. Having a lower credit score won’t exclude you from eligibility on most cases, however. You just need to have a minimum down payment of 10%.

Here is a short list of general requirements applications must satisfy:

• Steady employment history
• Valid Social Security, lawful residency, and legal age.
• Must be at least two years out of bankruptcy and have re-established good credit.
• The property must meet certain minimum standards at appraisal.

Check with the FHA for a full, comprehensive list of requirements so you can get mortgage your home today.