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Buyer's Guidechevron_rightGlossary

FHA loan

In plain English

A mortgage insured by the Federal Housing Administration. It's popular with first-time buyers because the down payment can be as low as 3.5% and the credit requirements are more flexible.

By David Knorr · Last reviewed October 28, 2026

Why it matters to you

FHA loans charge mortgage insurance two ways: 1.75% of the loan up front, usually added to the loan, and a yearly fee of about 0.55% for most buyers, split into your monthly payment. With less than 10% down, the yearly fee lasts as long as the loan: the only way out is to refinance, sell or pay it off, and a refinance depends on your equity and rates at the time. With 10% or more down, it ends after 11 years. Compare the total monthly cost with a conventional loan before you choose.

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infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.