Purchase

FHA Loan

(insured by the Federal Housing Administration)

FHA loans cannot exceed the statutory loan limit, which can be found here: FHA LOAN LIMITS. FHA loans require as little as 3.5% down, and are subject to both an Up Front Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP) which is paid monthly. The UFMIP is paid once and is generally financed by adding it to the loan amount. The UFMIP can be paid in cash by the buyer or seller. MIP is similar to PMI, as it is paid monthly. Credit requirements for an FHA loan are less stringent than requirements for a Conforming Loan.