What is an FHA Loan? Annette Bui| Updated May 13, 2020 | Mortgage Programs 101 An FHA loan is a program offered by the Federal Housing Administration, designed to help consumers with imperfect credit rating or little down payment to qualify for affordable and accessible aid when buying their first home. Borrowers with lower credit scores from 580 and up, may have the opportunity to apply for financing with a down payment as little as 3.5% of the total purchase price of the house. For prospects that have credit rating from 500-579, a minimum of 10% down payment would be required along with additional compensating factors. What are the Advantages and Criteria? FHA programs are one of the more attainable products for home buyers in the market, particularly for first time home buyers. Designed to aid buyers with a more lenient guidelines and requirements for credit, income and ability to repay. From buyers searching for their first home or looking to get federal aid for renovatin
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