FHA loan is a government-backed mortgage with easier qualification:
Requirements:
• Credit score 580+ (for 3.5% down)
• Credit score 500-579 (for 10% down)
• Debt-to-income ratio below 43%
• Steady employment for 2 years
• The home must be your primary residence
Pros: Low down payment (3.5%), accepts lower credit scores, competitive rates.
Cons: Mortgage insurance required for life of loan (unless you refinance), loan limits vary by area.
Best for: First-time buyers with limited savings or lower credit scores.
Full guide: First-Time Home Buyer Guide
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