What is it?
FHA offers government backed mortgages used to purchase, renovate, or refinance a home that are insured by the Federal Housing Administration. FHA mortgages have competitive interest rates and require at least 3.5% down for purchasing a home.
This is an outstanding alternative to conventional lending, however the home being refinanced or purchased must comply to FHA requirements.
Who can it help?
If you have less than perfect credit, as well as limited funds saved or invested for a sizable down payment, FHA could be perfect for you. FHA can work well for first time home buyers and individuals/families with moderate or limited income. In some cases you can take advantage of down payment assistance programs if you do not have enough savings or if you can not acquire gift funds from a family member.