FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners:

• Generally easier to qualify for than conventional loans - especially with lower credit scores.
• Minimum condition standards of the home.
• Lower down payment requirements - minimum 3.5% down payment
• Cannot exceed statutory loan limits.  Single Family limits - MultiFamily limits
• Mortgage Insurance automatically falls off once balance is paid down to 78% of purchase price (minimum 60 months).
• Seller can contribute toward your closing costs and pre-paid items.
• Down payment can be a gift from a family member or employer.

Learn more about FHA loans. (Department of Housing and Urban Development)