What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government insures the lender against loss, lenders can say yes to borrowers who don’t fit the conventional mold, buyers with thinner credit files, past credit events, or smaller savings. FHA has been turning renters into homeowners since 1934, and it remains the most-used first step into homeownership in America.
FHA loans are for primary residences: the home you'll actually live in. They're available through FHA-approved lenders, and pricing and overlays differ between lenders, which is why having Michael shop your file matters even within a single program.
How FHA differs from conventional
The headline difference is forgiveness: FHA credit guidelines are more flexible, and past events like collections or a prior rough patch are evaluated with more context. The trade-off is mortgage insurance: FHA loans carry an upfront mortgage insurance premium plus an annual premium, and for most borrowers that insurance stays for the life of the loan: where conventional PMI eventually falls off.
That trade-off is exactly the kind of thing a mortgage planner models for you. For some buyers, FHA is clearly the better entry path; for others, a conventional structure costs less over the life of the plan. Michael runs both and shows you the crossover point, including when a future refinance out of FHA might make sense.
The FHA path with Michael
Michael has guided buyers through FHA closings since the 1990s. He knows the underwriting guidelines cold: what documentation FHA wants, how appraisals differ, and how to keep a file moving. You’ll know exactly what to gather and what happens next at every step.
Why borrowers choose it
- Credit guidelines that allow for real-life history
- Accessible entry costs for buyers still building savings
- Gift funds from family are broadly allowed
- Co-borrowers who won't live in the home may help you qualify
- Assumable by a future qualified buyer, a unique long-term perk
Good to know
- Mortgage insurance typically lasts the life of the loan
- Primary residences only, no second homes or rentals
- Property must meet FHA appraisal and condition standards
- Loan limits vary by county
Program guidelines, eligibility requirements, and terms vary by lender and change over time. The overview above is educational, not a complete statement of any program’s requirements, an offer of credit, or a commitment to lend. Michael will confirm current guidelines for your exact scenario.
