FHA loans.

An FHA loan is a mortgage insured by the Federal Housing Administration. The insurance protects the lender, which lets lenders approve borrowers who would not fit conventional guidelines — thinner or bruised credit, smaller savings, or a higher share of income going to debt. FHA loans are for owner-occupied homes and can be used for single-family homes, approved condos, and small multi-unit properties you live in.

First-time buyers, buyers rebuilding credit, and anyone whose savings would stretch under a conventional loan. Also worth a look for buyers with a solid income but a shorter credit history.

Proof of steady income and employment; a credit history that meets FHA's standards (more forgiving than conventional); funds for the down payment and closing costs, which may include gifts from family or an assistance program; and a property that meets FHA's minimum condition standards, checked during the appraisal.

FHA loans carry both an upfront and an annual mortgage insurance premium. That cost is part of the trade for the easier qualification, and many FHA borrowers refinance into a conventional loan later once their credit and equity have grown. We'll show you both paths.