An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender will not have to write off a loan if the borrower defaults, the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans. Learn more about FHA loans here.
- Minimum Down Payment Requirement: 3.5% of purchase price (Gift funds allowed from relative)
- FHA Upfront Mortgage Insurance is 1.75% of loan amount and financed into the loan
- FHA Monthly Mortgage Insurance is .85%