FHA loans are insured by the U.S. government’s Federal Housing Administration. Because the loans are government insured, more people can qualify. Specifically, FHA loans have more flexible credit guidelines and allow lower down payments. They also allow a non occupant co-borrower to co-sign on the loan.

• Your down payment can be as low as 3.5% of the price of the home.

• Seller concessions up to 6% of the home purchase price are allowed.

• A parent or other non occupant may co-sign on the loan and their income and assets will be used to qualify the loan.

• You can refinance up to 97.75% of your home’s value – even if you’re getting cash to pay off a second mortgage or home equity line of credit (if your second mortgage or home equity line of credit meet certain requirements).

• You can consolidate high interest debt to a low fixed rate via a cash out refinance. In these situations, you may borrow up to 85% of your home’s value.

• Flexible credit guidelines enable borrowers with lower credit scores to qualify.


FHA loans are only available for owner-occupied, primary residences – not for second homes or investment properties.