FHA Loans

FHA loans are home loans backed by the Federal Housing Administration (FHA), a government agency created to help home buyers qualify for a mortgage. The FHA provides mortgage insurance on loans made by FHA-approved lenders, protecting them from the risk of borrower default.

Because lenders are protected, they can afford to be more lenient when offering mortgages. For example, this means it’s possible to get an FHA loan with a lower credit score than other types of loans.

To offset this, FHA loans will typically include mortgage insurance as part of the borrower’s responsibility.