Home Loans

What is an FHA Mortgage?

The FHA mortgage was designed by the Federal Housing Administration (FHA) to help families who may have otherwise been excluded from the housing market buy their dream home.

The Federal Housing Administration (FHA) was established to improve housing standards and provide an adequate home financing system with mortgage insurance.

FHA Loans vs. Conventional Home Loans

The main difference between a FHA Loan and a Conventional Home Loan is that a FHA loan requires a lower down payment, and the credit qualifying criteria for a borrower is not as strict. This allows those with minor credit problems to buy a home.

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Arrow pointing to Conventional Mortgage Requirements

Unlike conventional home loans, FHA loans allow you to:


A home with as little as 3.5% down payment


As with our other loan options an FHA loan can be combined with down payment assistance programs.

Get Competitive Interest Rates

And lower fees like closing costs and mortgage insurance


For a home loan despite low credit scores

Is an FHA Home Loan Right for You?

Despite the name, the FHA does not provide home loans.

 It simply insures a home loan in the event that the homebuyer defaults on the loan. Because of this “risk,” the FHA places certain requirements on the type of home, condition, and location of the property.



Another common misconception about FHA mortgages is that you must be a first-time homebuyer to take advantage of this type of loan.

While it’s true that FHA loans help many first-time homebuyers get into the real estate market, you do not have to be a first-time buyer in order to qualify.

Interested in learning more about FHA loans?

We help borrowers from all kinds of backgrounds save money on their home loans.