An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment or someone who has marginal credit. The 3.5% down payment requirement can come from the buyer or a gift from family, which makes FHA loans popular with first-time homebuyers but not limited to first-time homebuyers. It can also be used as a refinance program. Even people who have no credit or have gone through bankruptcy and foreclosure may still qualify. Borrowers can pay off an FHA mortgage early with no penalty.
FHA program does include 203k home improvement loans & REVERSE MORTGAGES which both can be used for a purchase or refinance.
“Quick Facts About FHA Loans”