What is an FHA loan?
An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). Typically, an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment (3.5%) and you can have less-than-perfect credit (credit scores as low as 580). Another advantage of an FHA loan is that the FHA allows you to have more monthly debt, which makes it easier to qualify.
Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront or financed into the mortgage, and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.
FHA loan limits are county specific. Please contact Park Place Finance to find out the limit in your county.