What is a FHA Loan?
FHA (Federal Housing Administration) loan parameters are geared towards a lower down payment, first time buyers or those with lower credit scores. With FHA you can get financed up to 96.5% of the purchase price. A 3.5% minimum down payment is necessary; however, all of the down payment may be gifted. FHA loans also require a down payment towards mortgage insurance premium (MIP) and as well as a monthly payment. FHA loans are a popular way of financing a home for customers wanting to get into a home with a minimal down payment.