What is an FHA loan?

By RealtyCrunch IncApril, 20th 2020
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What is an FHA loan?

An FHA loan is a mortgage issued by an FHA-appointed lender and insured by the Federal Housing Administration. This loan is designed for low-to-moderate income borrowers. It includes a lower minimum down payment and lower minimum credit score than conventional loans.

With FHA loans, down payments can come from savings, a financial gift from a family member or a grant for down-payment assistance.

All these factors make FHA loans popular with first-time home buyers.