An FHA loan is a government loan designed for people who don’t qualify for a conventional loan due to a high debt-to-income ratio, or those who don’t have a lot of cash for a down payment. They also have less-strict financing requirements compared to conventional mortgages.
BENEFITS OF AN FHA LOAN
- Only 3.5% is required for down payment
- Great for moderate or low-income families
- Can use 100% of gift funds for down payment
- Better interest rates for less-than-perfect credit
- Use for single-family home and multi-unit properties