What is an FHA Loan?
An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA). The most attractive features of the FHA loan are the lower minimum down payments (e.g., 3.5% of the loan amount) and credit score requirements. On the downside, FHA loans have a lifetime mortgage insurance, called Mortgage Insurance Premium (MIP), which cannot be removed from the loan unless you refinanced. Designed for low-to-moderate-income borrowers,
Frequently Asked Questions
Can I use an FHA loan for a multifamily property?
You can use FHA on up to four units as long as you occupy one as the owner. This is house hacking at its best.