FHA Loans

---

FHA loans are insured by the Federal Housing Administration (FHA) and it gives borrowers the opportunity to qualify for a mortgage if they've had trouble doing so in the past. The minimum down payment for an FHA loan is 3.5%, which makes it relatively affordable for home-buyers. Because these loan are backed by the FHA, they require insurance in the form of an upfront mortgage insurance premium (MIP) of 1.75% as well as a continuous MIP.

• Minimum down payment of 3.5%
• Down payment and closing costs can come from a gift 
• Might be more suited for borrowers with less than ideal credit
• Requires an upfront MIP of 1.75%  as well as a continuous, smaller MIP over the life of the loan