November 22, 2019

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Which FHA Home Loan Do You Need?

Which FHA Home Loan Do You Need?

First-time home buyers new to FHA home loans don’t always realize how many different FHA home loan options are available to them.

You don’t have to buy a one-bedroom house in the suburbs; FHA mortgages are more flexible and offer many ways for you to find and buy a dream home.

FHA Condo Loans

Because of a long-time misconception held even today about FHA loans being need-based, having income caps, or intended only for low-income borrowers (none of those things actually apply to the FHA mortgage loan program) some are surprised to learn that there is such a thing as an FHA condo loan.

Any qualified borrower (based on income, credit history, employment stability, and other financials) can apply for an FHA condo loan in a condominium project that meets FHA standards.

FHA Mobile Home Loans

Borrowers who want to purchase a mobile home, manufactured home, modular home, or a combination of land and a home of this type will find an FHA mortgage loan for them.

It’s good to shop around for an FHA mobile home loan; not all lenders offer them depending on the nature of the housing market and demand for this type of mortgage.

It’s good to shop around for an FHA mobile home loan; not all lenders offer them depending on the nature of the housing market and demand for this type of mortgage.

FHA Multi-Unit Home Loans

FHA loan limits go higher for home loans to purchase multi-unit property. Real estate up to four living units can be approved for purchase with an FHA mortgage, as long as the home is owner-occupied.

Occupancy is a requirement for all FHA mortgages, and buying a home with up to four living units can be a way for some to experiment with being a landlord.

Remember, at least one borrower obligated on the FHA mortgage loan must live in the property as a condition of loan approval. Your multi-unit home cannot be used as a bed-and-breakfast, Air b-nb, or serve any other “transient housing” type where the renter stays for 30 days or less.

FHA home loans can help first-time home buyers with a low down payment requirement (3.5%) which applies no matter how many units the home to be purchased has.

The seller can contribute a certain amount toward closing costs (you must negotiate this with the seller), and you can get down payment assistance if it is offered in your area.

Joe Wallace - Staff Writer

By Joe Wallace

April 24, 2019

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for for (8) years and is currently the Associate Editor for

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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