What is a Fha Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Allowing down payments as low as 3.5% with a 550 FICO, FHA loans are helpful for buyers with limited savings or lower credit scores.
Are they just for first time home buyers?
There is a common misconception that FHA-insured mortgage loans are reserved for those who are buying their first home. This is not true. People who have owned a house in the past can also use this program, as long as they meet the basic criteria.
Is FHA just for low-income borrowers?
This is another misconception about the program. It’s popular among borrowers with low to moderate income, because it allows for a relatively low-down payment. But it’s not limited to this group.
Do I make too much money to qualify?
There are no specific income requirements for FHA loans. So, technically speaking, you cannot make “too much” money to qualify. In fact, the Federal Housing Administration will insure loans over $1 million in some areas.
Can my down payment be gifted?
Yes, it can be gifted. One of the benefits of using an FHA loan to buy a house is that the down payment funds can be gifted by a family member, a friend, or other approved donor.