What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, built for buyers with modest credit or savings — 3.5% down with a 580+ score. The trade-off: mortgage insurance premiums that, with less than 10% down, usually last the life of the loan.
An FHA loan is a mortgage insured by the Federal Housing Administration. That government backing makes lenders comfortable saying yes to buyers who'd hear "not yet" elsewhere — which is the entire point of the program.
What makes it accessible
Down payments start at 3.5% with a credit score of 580 or higher — here's how the score tiers work, including what happens below 580 — and the qualifying math flexes more around existing debt than most alternatives. FHA also plays well with gift funds and down payment assistance, which is why so many first purchases run through it.
The trade-off: mortgage insurance premiums
FHA charges an upfront premium plus a monthly one, and here's the part to know going in: with less than 10% down, the monthly premium lasts the life of the loan — it doesn't fall off as you build equity (11 years if you put 10% or more down; HUD rules, verified August 2026). The practical exit is refinancing into a conventional loan later, once your credit and equity have grown — a real possibility, never a promise.
Who it tends to fit
Buyers rebuilding credit, buyers with modest savings, and buyers leaning on assistance programs. If your credit is already strong, run the numbers both ways before defaulting to FHA — the side-by-side comparison shows where each wins, and the full program menu has the rest of the field.
If FHA looks like your lane, let's make sure the rest of the plan — budget, neighborhoods, timing — is as solid as the loan. That part's my job.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.