FHA home loans insured by the
Federal Housing Administration
(FHA) offer expanded lending guidelines for individuals who may not qualify for conventional financing. These benefits include less-than-perfect
, low minimum
(3.50%), allowable gift funds for down payment, expanded debt-to-income
s, etc. To offset the higher risks associated with the loan, FHA charges a one-time
Premium (1.750% of the loan amount) and a higher Monthly Mortgage Insurance rate (1.350% of the loan balance).