What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration and made by approved lenders. The FHA does not lend money — it backs the loan against losses if certain rules are followed.
Plain-English explanation
FHA was built as an access program. The lender funds the loan; the FHA insurance covers the lender if the borrower defaults under defined conditions. Because the lender takes less risk, FHA usually allows lower credit scores, smaller down payments, and higher debt ratios than conventional. The tradeoff is upfront and monthly mortgage insurance, plus FHA property condition standards.
What can change the answer?
FHA program rules can change, lender overlays vary, and your specific file (credit, income, property, occupancy) drives the actual answer.
Related
Want the real answer for your file?
FHA guidelines are the rule. Your credit, income, payment, property, and county limit are what decide the actual answer.
More FHA questions on Basics
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.