An FHA mortgage is a government-backed home loan insured by the Federal Housing Administration (FHA), designed to make homeownership more accessible for buyers with lower credit scores, smaller down payments, or limited financial histories. With very low down payment requirements and more flexible credit qualifications than conventional loans, FHA mortgages are a popular choice for first-time homebuyers or those looking to re-enter the housing market.

FHA loans also come with competitive interest rates and manageable closing costs, making them an affordable option for many buyers. However, they do require mortgage insurance premiums (MIP), which protect the lender in case of default. This insurance includes both an upfront premium paid at closing and an annual premium included in your monthly payments. If you’re considering an FHA loan, it’s important to work with an experienced lender who can help you navigate the requirements and take advantage of the benefits this program offers. With the right guidance, an FHA mortgage can be the key to unlocking your dream of homeownership.