The FHA, or Federal Housing Administration, insures mortgages made by FHA-approved lenders. In the United States and its territories, FHA guarantees these loans on single-family and multi-family homes. It is the world’s largest insurer of residential mortgages, having insured tens of millions of properties since its inception in 1934.

• A FICO® score of at least 580 equals a 3.5 percent down payment.
• A FICO® score between 500 and 579 equals a 10% down payment.
• The payment of MIP (Mortgage Insurance Premium) is necessary.
• The debt-to-income ratio is 43 percent.
• The borrower’s primary residence must be the property.
• Borrowers must have a consistent source of income and confirmation of employment.