FHA loans can help people that may not be qualified for a conventional loan. An FHA loan can help you if you are a low-to-moderate income earner. These loans are backed by the Federal Housing Authority (FHA).
An FHA loan allows lower down payments and lower credit scores than what a traditional loan requires. The better your credit score, the less you are required to put down.
The FHA offers a variety of loan programs based on different needs, however they all require the following.
A credit score of at least 500. If your credit score is 580 and above, you can put down 3.5%.
You must purchase FHA insurance to qualify for the loan.