Low Cost FHA Loans and the fun facts
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration (FHA). FHA home loans require lower minimum credit scores, as low as 580. They also require lower down payments, which makes them especially popular with first-time homebuyers. FHA mortgages give borrowers more leniency with their Debt to Income ratios when it comes to qualifying. FHA loans are often a good fit for first-time home buyers or people with little savings or credit challenges.
All FHA loans include Mortgage Insurance Premiums. A (MIP) is an additional fee you pay to protect the lender in case you default on your FHA loan. FHA borrowers must pay two mortgage insurance premiums: one upfront at closing and another annually for as long as they repay the loan, in most cases.