What is a FHA Home Loan
An FHA home loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan. FHA loans are very popular, especially with first-time home buyers. Borrowers can typically qualify for an FHA loan with a down payment as little as 3.5% and a credit score of 580 or higher.