FHA loans can be easier to qualify for. The requirements for an FHA loan are generally more lenient than conventional loans or other loan types when it comes to credit, income, and down payment requirements.
Low down payment
With FHA loans, you don’t need a large down payment to become a homeowner. You could put down as little as 3.5% for a fixed-rate FHA loan if your FICO score is high enough.
To qualify for the low down payment of 3.5%, you need to meet a minimum FICO score specified by your lender. This score can vary from lender to lender, but FHA score requirements are generally lower than the requirements of other loans, including conventional.
You can use an FHA loan on several property types, including a single-family home, a multifamily home with up to four units, a condo, or a manufactured home.
However, you can only use an FHA loan to buy a home you plan to live in as a primary residence. To finance a vacation home or investment property, you’ll need to consider another type of loan.