A long-running and popular option for homebuyers, an FHA home loan is mortgage loan backed by the Federal Housing Administration (FHA) that allows for smaller down payments. FHA loans also feature less-stringent qualifying criteria such as flexible income and credit guidelines.
The FHA does require borrower-paid mortgage insurance. The Mortgage Insurance Premium (MIP) can be financed into the loan amount.
Properties approved for an FHA loan need to meet minimum property standard requirements that cover structural soundness, security, and safety. Property types that may qualify include primary residences, single- and multi-family properties, condos, manufactured homes, and townhomes.
Not all applicants will qualify or an FHA loan. According to the FHA Loan Requirements in 2022, applicants must meet the following requirements, however additional requirements and/or conditions may apply. Ask for details.
Yes. The Department of Housing and Urban Development's (HUD) Lender's Guide advises that a borrower may pay all or part of a mortgage off before the term ends.
HUD’s first-time homebuyer definition in the HUD HOC Reference Guide outlines the criteria below:
FHA loans could take 15-60 days to close, but the average range is 30-45.