Core Insights - FHA loans, insured by the Federal Housing Administration, provide affordable mortgage options for many Americans, especially first-time home buyers and those in low-to-moderate-income households [1][2][3] - The FHA has significantly contributed to the increase in homeownership in the U.S., with approximately 65% of Americans now owning homes compared to only 10% in 1934 [2][3] - FHA loans allow borrowers to finance up to 96.5% of a home's value with loan terms extending up to 30 years, making homeownership more accessible [4] FHA Loan Types - The FHA 203(b) loan is the primary mortgage product for purchasing single- and multi-family homes, serving as the flagship FHA loan [5] - FHA adjustable-rate mortgages (ARMs) offer initial fixed terms followed by adjustments based on market conditions, with options for fixed-rate terms of one, three, five, seven, and ten years [6][7] - FHA loans are available for condominiums, with specific approval processes to ensure compliance with agency requirements [8][9] - The FHA offers Title I and Title II loans for manufactured homes, with Title I allowing land leasing and Title II requiring the purchase of both home and land [10][11] - The FHA Energy Efficient Mortgage program enables financing for energy-saving upgrades, requiring only a 3.5% down payment on the home purchase price [12][13] - The Standard FHA 203(k) mortgage allows financing for home purchases and repairs in one loan, while the Limited 203(k) is for less extensive renovations with a cap of $75,000 [14][16] - The Good Neighbor Next Door program offers significant discounts for eligible professionals, including law enforcement and teachers, with a low down payment requirement [17][18] - The FHA 203(h) loan assists disaster victims in rebuilding or purchasing homes in declared disaster areas with 0% down [19][20] - The FHA Hawaiian Home Lands Loan Program supports Native Hawaiians in homeownership without ongoing mortgage insurance [22][23] - The FHA Indian Reservations and Other Restricted Lands mortgage program facilitates home purchases on tribal lands with a low down payment [25][26] FHA Refinancing Options - The FHA Simple Refinance program allows homeowners to replace their existing FHA loans with new terms, including rolling closing costs into the new loan [27][28] - The FHA Streamline Refinance option simplifies the refinancing process, potentially eliminating the need for an appraisal or credit check, provided certain conditions are met [29] - The FHA cash-out refinance allows homeowners to access equity in their homes, requiring at least 20% equity and full underwriting [30] General FAQs - There are various types of FHA loans available for both purchasing and refinancing homes, with the FHA 203(b) being the most common [31][32] - To qualify for an FHA loan, a minimum credit score of 580 and a 3.5% down payment are typically required, with specific property requirements [33]