The Federal Housing Administration (or “FHA”) was established in 1934 to advance opportunities for Americans to own homes.
The FHA provides private lenders with mortgage insurance that gives them the security they need to lend to first-time home buyers who might not be able to qualify for conventional loans. With an FHA insured loan, you don’t need perfect credit or a high-paying job to qualify.
The FHA makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months’ rent… and your monthly mortgage payments might not be much more than your monthly rent payment.
The FHA is funded by monthly premiums paid by FHA insured loan borrowers. No federal or state tax dollars are used to fund the program.
To see if you might qualify for an FHA insured loan, talk to your lender. They can help review your situation, tell you if you meet the credit requirements, and help you understand if you can afford the monthly mortgage payments.