An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). Many first-time homebuyers choose FHA loans because they can’t qualify for conventional financing due to credit issues or a lack of down payment savings.
The FHA has helped millions of renters become homeowners since 1934, by insuring mortgages offered by FHA-approved lenders. The insurance allows lenders to make loans to borrowers with less-than-perfect finances, and recoup the lenders’ losses if a borrower can’t repay the loan.
Here are six basic steps to follow to apply for an FHA loan:
Before you fill out an FHA loan application, learn about some key FHA loan requirements so you can decide if an FHA loan is right for you.