FHA Purchase might be just what you need.
- Low down payments
- Low closing costs
- Easy credit qualifying
The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so lender can offer you a better deal. Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. Borrowers with credit scores as low as 580 can qualify for an FHA loan. Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties. By comparison, you’ll typically need a credit score of at least 620, and a down payment between 3% and 20%, to qualify for a conventional mortgage. Pre- payment penalties do not apply.