FHA Loan
mortgageDefinition
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership accessible to borrowers with lower credit scores and smaller down payments. FHA loans require a minimum down payment of 3.5% with a credit score of 580 or higher, and they allow more flexible qualification criteria than conventional loans. The tradeoff is that borrowers must pay mortgage insurance premiums for the life of the loan in most cases.