Definition
A mortgage insured by the Federal Housing Administration (FHA), designed for borrowers with lower credit scores or limited down payments. FHA loans allow credit scores as low as 500 (with 10% down) or 580 (with 3.5% down). They require both an upfront mortgage insurance premium (MIP) of 1.75% and an annual MIP of 0.55%. FHA loans have maximum loan limits that vary by county, ranging from $472,030 to $1,149,825 for single-family homes in 2026.
Related Mortgage Terms
- Conforming Loan
A mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, includin...
- Down Payment
The upfront portion of the home's purchase price paid in cash by the buyer. Conv...
- Mortgage Insurance Premium (MIP)
The mortgage insurance required on FHA loans, consisting of an upfront premium (...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
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