How FHA Loans Work and Who Qualifies

An FHA loan is a mortgage backed by the Federal Housing Administration designed to help buyers with lower credit scores or smaller down payments. You can qualify with as little as 3.5 percent down if your credit score is 580 or above. Scores between 500 and 579 require a 10 percent down payment. FHA loans come with mortgage insurance premiums which add to your monthly cost but make homeownership accessible earlier. They are available for single-family homes, condos, and multi-family properties up to four units. Talk to an FHA-approved lender to see if this program fits your situation.