– FHA loans typically require a lower down payment, as little as 3.5% of the home’s purchase price.

– This makes it easier for buyers who may not have significant savings to purchase a home.

– FHA loans are more lenient with credit scores compared to conventional loans.

– Borrowers with credit scores as low as 580 can qualify for a 3.5% down payment, while those with scores between 500-579 may qualify with a 10% down payment.

– FHA loans require two types of mortgage insurance premiums (MIP):

– Upfront Mortgage Insurance Premium (UFMIP):Typically 1.75% of the loan amount, which can be paid at closing or rolled into the loan.

– Annual Mortgage Insurance Premium (MIP): Paid monthly, this amount varies based on the loan amount, loan term, and down payment. It usually ranges from 0.45% to 1.05% of the loan amount per year.

– MIP is required for the life of the loan unless a larger down payment (10% or more) is made, in which case it can be canceled after 11 years.

– FHA loans allow for higher debt-to-income (DTI) ratios than conventional loans, which means borrowers can have more debt relative to their income and still qualify.

– FHA loan limits vary by region and are based on the median home prices in each area. The limits are generally lower than those for conventional loans, but they can vary significantly depending on the location.

– FHA loans can be “assumed” by a new buyer, meaning the buyer takes over the seller’s existing loan. This can be an attractive feature if the current loan has a lower interest rate than what’s available in the market.

– Homes purchased with FHA loans must meet certain safety, security, and soundness standards. The property must undergo an FHA appraisal, which is more stringent than a conventional loan appraisal.