An FHA mortgage is a type of government-backed mortgage loan that can allow you to buy or refinance a home, often times, with looser financial requirements. These loans are offered by mortgage lenders, banks, credit unions and insured by the Federal Housing Administration.
Borrowers who want to finance a home but don’t qualify for a conventional mortgage due to less than perfect credit or insufficient income, may find that an FHA loan is a more appropriate option for them.
Here, we’ll take a closer look at FHA home loans, their requirements and whether an FHA loan might be right for you.
What is an FHA loan?
FHA loan requirements
FHA loan down payment requirement
FHA loan limits
Buying a home with an FHA loan
FHA loan refinances
FHA Rate/Term Refinance
FHA cash out refinance
An FHA 203(k) loan allows you to buy a home and make renovations on a single loan. While it’s possible to only make renovations with a 203(k) loan, this usually isn’t your most affordable choice. The minimum FHA 203(k) loan balance is $5,000 – you cannot borrow less than this. Any home repairs or improvements you make must conclude within 6 months to stay within your loan terms.