Loan Type:

FHA mortgages are government-backed loans that are insured by the Federal Housing Administration.

Down Payment:

FHA mortgages require a minimum down payment of 3.5% of the purchase price, which can be a gift from a family member or a grant from a government program.

Credit Score:

The minimum credit score required for an FHA mortgage is typically 580, but some lenders may require a higher score depending on the borrower’s financial situation.

FHA mortgages have loan limits set by the Department of Housing and Urban Development (HUD), which vary depending on the location of the property.

Interest Rates:

The interest rates for FHA mortgages can be fixed or adjustable, and are determined by the lender based on the borrower’s creditworthiness, loan amount, and down payment.

Mortgage Insurance:

FHA mortgages require borrowers to pay an upfront mortgage insurance premium (MIP) and an annual MIP, which protects the lender in case of default. The upfront MIP can be financed into the loan, while the annual MIP is paid as part of the monthly mortgage payment.