An FHA loan is a mortgage loan fully insured through the Federal Housing Administration (FHA) and issued by FHA-approved lenders, such as a mortgage company, bank, savings and loan association, etc. An FHA loan has several key advantages over a traditional loan:
- Lower down payment, usually requires just a 3% down payment.
- Lower interest rate
- Lower closing costs
- Easier to qualify. Loans through the FHA program are more easily approved for those with less than perfect credit.
- Lower chance of foreclosure, because the FHA is more willing to work with the borrower to avoid foreclosure.
Therefore, an FHA loan is a very good option if you qualify: click here to see if you are eligible for an FHA loan (free via LendingTree.com).
