What is an FHA loan?
The Bankrate.com financial term of the day is: "FHA loan."
FHA is part of the Washington, D.C., alphabet soup: It stands for Federal Housing Administration. An FHA loan is a mortgage that the agency insures as a way of helping low-income borrowers become homeowners. The down payment on these loans can be low, as little as 3.5 percent of the purchase price, and that money can come from a gift. Plus, closing costs and fees can be rolled into an FHA loan.
An FHA loan is a mortgage backed by the government to help more people become homebuyers.
To shop for the perfect home loan, visit the Mortgage section at Bankrate.com.