Who it is for
- You have a down payment that may be smaller than many conventional loans require.
- Part of the down payment may be a gift, which FHA often allows when the paperwork is right.
- You are buying a home that will be your primary residence. FHA is not for pure investments.
How it usually works
- We check whether FHA or conventional is actually cheaper once mortgage insurance is included.
- The property has to meet FHA standards. Some repairs have to happen before closing.
- Mortgage insurance is part of the deal. On many FHA loans it lasts longer than people expect.
Read this before you get attached
- There is usually an upfront mortgage insurance premium and a monthly premium.
- Loan limits apply and change by county.
- A low down payment means you start with less equity.
Questions worth asking
- What are the current down-payment and credit guidelines this lender is using?
- How long does the monthly mortgage insurance last on this loan?
- Does the property need repairs before an FHA appraisal will pass?