What is an FHA loan?
An FHA loan is a government-backed mortgage built for buyers with lower credit or smaller savings — it allows about 3.5% down with a 580+ score. The trade-off is mortgage insurance, which usually stays for the life of the loan.
An FHA loan is insured by the Federal Housing Administration, which makes lenders comfortable approving buyers with lower credit scores or smaller down payments. You can often put down just 3.5% with a score around 580.
The trade-off is mortgage insurance: an upfront premium plus a monthly amount that, on most FHA loans today, stays for the life of the loan unless you refinance later. For many first-time buyers it's the door-opener — and you can always refinance into a conventional loan down the road once your credit and equity grow.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.