FHA-Insured Loan

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What is an FHA-Insured Loan?

We can define an FHA-insured loan as a mortgage that the Federal Housing Administration insures. These loans are issued by FHA-approved lenders. FHA-insured mortgages are popular with first-time homebuyers. This is because they require lower minimum credit scores as well as down payments compared to many conventional loans.

However, you will require a credit score of 580 (at least) in order to qualify. The FHA insures home loans issued by lenders, such as banks and credit unions.

Examples of FHA-Insured Loans

  • Example 1: Home Equity Conversion Mortgage
  • Example 2: Section 245 (a) Loan

Here’s Investopedia’s definition of an FHA-Insured Loan .

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