The FHA (Federal Housing Administration) , which is part of HUD (U.S. Department of Housing and Urban Development ) insures the loan, so lender can offer a better deal.
FHA Loan
The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders.
FHA Loan
Borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage.
FHA Loan - Requirements
FICO® score at least 580 = 3.5% down payment.
FICO® score between 500 and 579 = 10% down payment.
FHA Loan - Requirements
MIP (Mortgage Insurance Premium ) is required.
FHA Loan - Requirements
Debt-to-Income Ratio < 43%.
FHA Loan - Requirements
The home must be the borrower's primary residence.
FHA Loan - Requirements
Borrower must have steady income and proof of employment.