FHA loans are insured by the Federal Housing Administration and designed to make homeownership affordable, especially for first-time home buyers.
An FHA mortgage is actually available through many of the same banks or lending institutions you would normally contact for a mortgage because the housing administration doesn’t make the loan. Instead, the FHA insures loans made by other lenders when a homebuyer wouldn’t otherwise qualify for a conventional mortgage.
The benefits of FHA loans include:
- Low down payment
- Favorable rates and terms, especially for first-time home buyers