An FHA loan works well if you’ve had a bit of trouble with your credit, and your score may be just a little less than idea. An FHA loan offers easier qualifying guidelines in relation to your credit score.  This loan is secured and guaranteed (although not financed) by the Federal Housing Administration (FHA). Because the loan is secured, even in relation to less than perfect credit scores, borrowers are still able to get competitive interest rates.


If you have less than perfect credit scores, you may still qualify for an FHA loan. Additionally, FHA loans require a significantly smaller down payment requirements than conventional mortgages – and down payments can be received as gifts, frmo family members, employers, or even charitable organizations.

One consideration with FHA loans is the requirement of holding a mortgage insurance for 5 years, – gathered in monthly installments.