Many times we are asked What is an FHA loan? In a nutshell a FHA loan allows you to buy a home with as little as 3.5% down.
Along with the lower down payments FHA mortgages allows homebuyers to have less than stellar credit than a conventional mortgage. For example we can lend to homebuyers with a credit score as low as 580. But remember the lower the score the more stringent the guidelines.
One of the most common misconceptions I hear is FHA loans are only for first time home buyers. That is False, it can be your first or your 15th house and you still could be eligible for an FHA loan.
FHA loans are even available for refinancing.