What is an FHA loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An FHA loan is a government-backed mortgage with easier credit and down payment requirements — 3.5% down at a 580 score. It's the most popular path for first-time and credit-rebuilding buyers.
FHA charges an upfront and annual mortgage insurance premium, and the home must be your primary residence. It pairs well with Florida down payment assistance. We'll confirm whether FHA is your lowest-cost option.
A government-backed loan
An FHA loan is a mortgage insured by the Federal Housing Administration. The government backing lets lenders offer easier terms, like a 3.5% down payment and a credit score as low as 580.
It is one of the most popular loans for first-time buyers and anyone rebuilding credit because the bar to qualify is lower than conventional financing.
The trade-off
The main cost is mortgage insurance. FHA charges an upfront premium plus a monthly premium, and on most loans it stays for the life of the loan unless you refinance later.
For many Florida buyers, that cost is worth getting into a home now. Reach out and we will compare FHA against your other options in plain numbers.