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What you Need to Know about FHA Loans

Federal Housing Administration (FHA) loans can be an excellent choice for first-time homebuyers, as well as those who have very little money to put down on a house. They do operate differently than conventional mortgages, which is why you should know a little bit about them before applying.

What are FHA Loans?

FHA loans are ones that are insured by the department of Housing and Urban Development (HUD), which allows approved lenders to offer more favorable terms. Contrary to popular belief, they are not financed through the Federal Housing Administration, meaning you will still make your payment directly to the lending institution as you would with any other mortgage.

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