The federal housing ADMINISTRATION 

FHA LOAN 

FHA  (Federal Housing Administration) Loan is insured against default by the FHA.  This means that the FHA guarantees to a lender that the loan won't be written off if the borrower defaults- FHA will pay the loan. 

Key Takeaways 

• No income limits; limits on borrowing amount.

• Minimum down payment required for purchase is 3.50 % of purchase price. 

• Can use gifts for down payment and closing costs. 

• No prepayment penalty. 

• Financing for home improvement using FHA 203k programs. 

• Minimum credit score usually around 620.

• Qualify post bankruptcy- 2 years after.

• Qualify post foreclosure- 3 years after.