FHA

An FHA loan is insured by the Federal Housing Administration. That insurance is what allows the program to use guidelines that may be more flexible than other paths for eligible borrowers. FHA financing is not limited to first-time buyers — it is available to eligible borrowers purchasing or refinancing a primary residence, subject to program requirements.

• Borrowers whose credit history has some repair work behind it.
• Buyers who have limited funds available for a down payment.
• Households where qualifying income is spread across more than one source.
• Repeat buyers, not only first-time buyers, who meet occupancy and program requirements.

• Credit and down-payment guidelines may be more flexible for eligible borrowers.
• It can create a workable path when other programs do not fit the current picture.
• It is a widely understood program, which can help in negotiation and planning.

• Mortgage insurance premiums are required, and depending on the structure they may remain for the life of the loan.
• The property must meet HUD standards, which can affect certain homes.
• Occupancy requirements apply — it is intended for a primary residence.

FHA is a tool for access. It can be the right way to move now rather than wait, and it does not have to be permanent — many borrowers revisit the structure later once the picture changes. Whether it is the better path depends on the total cost over the time you expect to keep the loan.

All FHA program guidelines apply and are subject to change. Mortgage insurance premiums are required. Property, income, credit, and other requirements apply.