FHA Loan
A mortgage insured by the Federal Government (Federal Housing Administration). These loans are mainly for low/moderate income purchasers. These loans require a lower minimum down payment and credit scores than most conventional loans.
- Example : Tommy wants to purchase a home for $300,000. He only has $12,000 of his own funds to put towards the purchase. Additionally, Tommy’s credit score is not as high as he would like. Star Bank has denied Tommy a conventional mortgage loan. Tommy is able to obtain an FHA loan with only this 4% down payment and less than perfect credit.
