WASHINGTON (AP) – The Federal Housing Administration is changing regulations to make it easier for more first-time condo.
This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or.
FHA First-Time Homebuyer Definition. The Federal Housing Administration has provided government insurance for home mortgage loans since the Great Depression in the 1930s. While FHA-insured loans are not exclusively for first-time homebuyers, they are popular with this demographic thanks to the favorable terms provided by lenders.
FHA loan limit – FHA home loans have maximum mortgage limits that vary by state and county. FHA down payment – FHA loan guidelines require a minimum down payment of 3.5 percent. FHA property requirements – FHA loans require that the home being purchased meets certain conditions and is appraised by an FHA-approved appraiser.
TLDR: An FHA Loan is an affordable, accessible loan option that's particularly suitable for first time home buyers. It protects lenders in the instance of borrower.