FHA mortgage loans are issued by federally qualified lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development. These mortgage loans have less underwriting restrictions and can be easier for a first-time homebuyer to get a home loan.
FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- 3.5% cash down is required
- Cannot exceed statutory loan limits.
- $271,000 if the limit for most parishes in Louisiana
- $347,000 for a duplex
- PMI Has dropped from 1.35% to .85% in 2015
- Less restrictions on credit
- Minimum 580 credit score
- At least one tradeline