If you're a first-time homebuyer looking to get into your dream,an FHA Loan may be the right option for you.
Backed by the Federal Housing Administration, FHA loans were formed to help potential homebuyers with low-to-moderate income achieve homeownership. A primary characteristic that makes FHA loans an attractive option is that they require lower minimum down payments and credit scores.
FHA loans allow borrowers to qualify for down payments with as little as 3.5% down if their credit score is 580 or higher. If you have a credit score lower than 580, FHA loans help solve that situation as well. For credit scores between 500-579, borrowers can still receive a loan but a down payment of at least 10% is required. While these benefits sound stellar, it’s important to know that as a borrower you also have to pay mortgage insurance premiums as this protects your lender if you default.
Source: https://fhmtg.com/2020/01/22/what-is-an-fha-loan/
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