These loans require as little as 3.5% down, the rates are wonderful, and they allow for a much higher debt to income ratio. You can only use an FHA loan for a primary residence loan, and there is a maximum loan amount for this program.
- FHA Loan:
- FHA mortgage loans are issued by federally qualified lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- Cannot exceed statutory loan limits.