FHA loans were created by the US Department of Housing and Urban Development (HUD) to help those consumers who may not normally qualify for a conventional mortgage.
FHA borrowers can take advantage of more flexible underwriting guidelines such as:
- Lower Down-Payment Requirements
- Qualify with less income
- Qualify with less than stellar credit (Credit scores as low as 580 may be available)
- Use gift money for down-payment
- FHA Streamline Refinance (Appraisal may not be required)