The FHA, or Federal Housing Administration, helps first time home buyers secure financing for a home by insuring mortgages on loans provided by FHA-approved lenders. It is a great option for first time home buyers to buy a home without having saved enough for a large down payment. According to the FHA website, this is what is required to qualify –

• Debt-to-Income Ratio of less than 43%
• A Mortgage Insurance Premium (MIP) is required.
• Borrower must have steady income and proof of employment

For 3.5% down payment:

• A FICO score of at least 580

For 10% down payment:

• A FICO score between 500 and 579

Reach out to an agent to get more information on home financing and recommendations on lenders and/or reach out to your preferred lender.