FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs.
Common FHA Loans Questions:
FICO score @ least 620 = 3.5% down payment
MIP is required (Mortgage Insurance Premium)
The home must be borrower’s primary residence
Proof of employment and steady income is a must for borrower
Up to 6% seller assist is allowed