Private lenders make FHA loans, and the Federal Housing Administration insures them. That insurance lets lenders accept smaller down payments and a wider range of credit histories than many conventional loans.
Why it matters
It opens the door for many first time buyers. In exchange, FHA loans carry their own mortgage insurance, paid upfront and monthly, and the home has to meet FHA property standards.
Where you meet it
When you compare loan types. Our guide on FHA, conventional, VA and USDA loans lays out the differences.
Planning to buy?
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