Confused about all of the loan options out there? Wondering what is a FHA loan? You’re not alone.
An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers who take out FHA loans are required to pay for mortgage insurance, which protects the lender in case the borrow defaults on the loan. For this reason, lenders often offer FHA loans at very attractive interest rates, with lower down payments (sometimes as little as 3%) with less stringent and more flexible qualification requirements such as lower credit scores.
Read more: 7 Crucial Facts About FHA Loans




