FHA loans are government-insured loans through the U.S. Department of Housing and Urban Development, also called HUD. FHA loans offer an excellent start to first-time home buyers, with options such as a low down payment or a low closing cost option.
- Low down payment is required
- Your own personal savings are not required to pay down payment or closing costs. Gift funds may be used instead
- You can buy an existing home, or build a new one
- Some geographic limitations apply