FHA Home Loan
The FHA loan is similar to a Conventional loan, but there are a few differences to note. One main difference is that the FHA loan is insured by the Federal Housing Administration (FHA), making it a good option for home buyers and allowing you to get a better deal on your mortgage. Another important difference is that the minimum required down payment for FHA loans is only 3.5%. However, FHA loans require a funding fee that is not required for Conventional loans.
Relatively low credit score requirement, compared to other loan programs.
Least restrictive requirements of all of the loan programs.
Federally backed (insured) by the Federal Housing Administration.
Relatively minimal down payment requirement (3.5%) compared to the other programs.