What Should you know about applying for an FHA Mortgage?

FHA home loans differs from their conventional counterparts in many ways including a lower dowm payment requirements, generally more forgiving credit requirements, and occupancy rules. With a minimun of 3.5% if the buyer credit score is 580 or higher.

FHA loans tipycally requires borrowers to occupy the property the're buying and use it for their primary residence for at least one year and must occupy the home within 60 days of signing the loan.

Under FHA rules and guidelines, the property being financed must be occupied by the owner ,which means that rental and seasonal properties are not elegible for FHA loan.

However, there are few exceptions and ways to get around this general rule.

One way to use FHA loan for a rental is to purchase an income multiunit dwelling with up to four units, provided that one is occupied by the borrowrer as their primary residence.