FHA Loans are insured by the Federal Housing Administration, so homebuyers have an easier time qualifying for a mortgage. That being said, those who typically benefit most by an FHA loan are first-time home buyers and those who may not have ideal credit.
FHA Loan Benefits
- Easier to qualify for
- Only a 3.5% downpayment required
- Both fixed and adjustable rate mortgages available
- Often better interest rates due to being backed by the government
- Stability: The FHA has programs available that are designed to help homeowners keep their homes during difficult times. Keep in mind to always try to work out problems with your lender before the situation becomes dire.