FHA loan
An FHA loan is insured by the Federal Housing Administration and made by a lender. The insurance lets lenders accept smaller down payments and a wider range of credit, and it adds a cost.
Buyers with a smaller down payment saved, or a shorter or imperfect credit history.
What a lender will ask for
- A lender approved to originate FHA loans. Fedrate Mortgage is a broker: we place your file with one of them.
- A credit history the lender reviews against FHA guidance, which is generally broader than a conventional loan allows.
- A down payment, which for FHA is typically lower than a conventional loan asks for.
- A property that meets the condition standards FHA sets, established by an FHA appraisal.
- Mortgage insurance, which applies to every FHA loan.
What it offers
- A route to a mortgage when the down payment saved is smaller, or the credit history is shorter or imperfect.
- Guidance on FHA, VA and conventional loan options side by side, so an FHA loan is chosen because it fits and not by default.
What to weigh up
- FHA mortgage insurance is charged both at closing and annually, and on most FHA loans it stays for the life of the loan unless the loan is refinanced.
- The property has to meet FHA condition standards, which can rule out a home that needs significant work.
- FHA sets a maximum loan amount that varies by county, so a higher priced home may need a different program.
- Fedrate Mortgage is not affiliated with, nor acting on behalf of, the Federal Housing Administration or any other government agency.
Related loan programs
Start with a pre‑qualification request
Tell us what you want to do and where, and we come back with options compared across multiple wholesale lenders. A pre-qualification request starts it, and nothing is a commitment until a lender has reviewed your file.