The Federal Housing Administration (FHA) is a federal government agency that insures private home loans for home financing and/or home repairs.
This type of loan allows first-time buyers to obtain 30-year fixed financing with minimum requirements:
- Minimum FICO Score 580
- Minimum Down Payment 3.5%
- Low interest rates
- Low closing cost
Properties financed under the FHA guidelines must meet the Minimum Property Standard (MPS). Which means that the property must meet certain conditions of construction, quality, safety and durability. Not all properties qualify.