What is a
Federal Housing Administration Loan
(FHA) Loan
A Federal Housing Administration (FHA) loan is a mortgage insured by the FHA and issued by an FHA-approved lender. An FHA loan is designed for low to moderate-income borrowers. They require a lower minimum down payment and lower credit scores compared to conventional loans.
Because of their many benefits, FHA loans are popular with first-time homebuyers.
FHA Loans vs. Conventional Mortgages
FHA loans are available to individuals with lower credit scores. By comparison, you'll typically need a credit score of at least 640 and a down payment between 3% and 20%, to qualify for a conventional housing loan in Florida.
Who Qualifies for an FHA Loan
There is no minimum or maximum when it comes to income limitations and requirements for FHA home loans.
For an FHA loan—or any type of mortgage—at least two years must have passed since the borrower experienced a bankruptcy event (unless you can demonstrate that the bankruptcy event was due to an uncontrollable circumstance). You must be at least three years removed from any mortgage foreclosure events, and you must demonstrate that you are working toward re-establishing good credit. If you're delinquent on your federal student loans or income taxes, you won't qualify.