The Good and BAD of FHA Loans | NEW FHA Loan Requirements 2023 from fha Watch Video

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Jeb Smith

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The FHA has certain requirements that borrowers must meet to be considered eligible for the government backed mortgage. This is similar to what is required by lenders, but are less stringent than borrower requirements for conventional loans. This is one of the things that makes FHA loans so appealing to first-time homeowners.
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Mortgage insurance is paid if you as a borrower were to make a down payment of less than 20 percent on your home loan. It is paid by you, but is used to protect the lender from losses if you were to default on the loan. When it comes to the FHA, borrowers must pay a mortgage insurance premium, or MIP, on the home loan.
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