FHA loan
Also called: fha, federal housing administration loan
A government-insured mortgage designed to widen access to financing, with lower down payment and credit thresholds than most conventional loans.
FHA loans are insured by the Federal Housing Administration, which lets lenders accept lower down payments and lower credit scores than a typical conventional file. In exchange, the borrower pays mortgage insurance, an upfront premium that is often financed, plus an annual premium collected monthly.
Most lenders apply overlays stricter than HUD’s published floor, so a published minimum is not a guarantee a file will be originated. FHA loans are generally for a primary residence, with limited exceptions.
Related terms
- MIP (Mortgage Insurance Premium)The mortgage insurance charged on an FHA loan: an upfront premium plus an annual premium collected monthly.
- Conventional loanA mortgage not insured or guaranteed by a government program such as FHA, VA, or USDA.
- Down paymentThe share of the purchase price you pay in cash, becoming your starting equity in the property.
- House hackingLiving in one unit of a property while renting the others, using owner-occupied financing to buy an income property.
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Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures