Federal Housing Administration (FHA) loans are federally-backed mortgages designed for homeowners who may have lower than average credit scores. FHA loans are backed by the Federal Housing Administration, an agency under the jurisdiction of the Department of Housing and Urban Development. FHA loans are insured by the FHA, which simply means that organization protects your lender against loss if you default on your loan. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934.

Your lender will evaluate your qualifications for an FHA loan as it would any mortgage applicant. It's important to keep in mind that, as a general rule of thumb, the lower your credit score and down payment, the higher the interest rate you'll pay on your mortgage.

• Have verifiable income.
• Be able to afford the housing payment AND any existing debt.
• Able to pay least a 3.5% down payment (or 10% if your CS is below 580).
• Have an established credit history.
• Have a FICO score of at least 580-640.
• Home that does not exceed FHA loan limits (range from $356,362– $822,375 and vary by county)
• Apply for the correct type of FHA loan.