Daniel Kurt | Investopedia
Not long ago, FHA home loans were something of a niche product that appealed mostly to low-income buyers. But when the housing bubble burst in 2008, the federal program suddenly became a common way to finance property.
Even today, FHA mortgages can be appealing to those who don’t qualify for conventional home loans. Certainly, there are some big pluses, including the ability to buy a house with very little money down. But be careful: Recent changes have made these loans more expensive than ever. (See Is An FHA Mortgage Still A Bargain?)
Here’s what you need to know if you don’t fit the ideal credit profile for most banks and are considering one of these loans.