FHA - Federal Housing Administration

The definition of mortgage term: Federal Housing Administration

A government agency that is responsible for setting standards for construction and underwriting. The FHA guarantees mortgages that require only a small down payment of 3.5%. The requirements for FHA loans are less stringent and more flexible than conventional home loans. In exchange for a low down payment the borrower must pay a mortgage insurance premium each month. The minimum credit score to be approved for an FHA loan is 580. However, if you have a credit score between 500-579 you can still be approved but only for 90% Loan-to-Value

 

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