FHA loans are insured by Federal Housing Administration (FHA), a government agency. FHA loan is the most popular low downpayment loan for First Time Home Buyers.

Some of the benefits of FHA Loans include:

  • Downpayment as low as 3.5%
  • Downpayment can be gifted by parents, children or siblings
  • Interest rates usually lower than conventional/conforming rates
  • More relaxed underwriting guidelines makes it easier to qualify

Here is how to qualify for FHA loans:

  • You must occupy the property as your primary residence. You do not need to be a first time home buyer.
  • A minimum credit score of 640 required. In some cases, even a lower credit score can help you qualify.
  • Two years employment history is required. If you went to school immediately prior to your job, this condition may be waived

Applying for FHA Loans:

You can apply for FHA loans by completing a short form here or a full loan application here.

You may also like to read:

Complete guide to qualifying for FHA Loans

Everything you wanted to know about FHA Mortgage Insurance Premium