FHA loans are loans from private lenders that are regulated and insured by the Federal Housing Administration (FHA). FHA loans differ from conventional loans because they allow for lower credit scores and lower down payments.   

A few things you should know about FHA loans:

• FHA is for primary residence for single family and multifamily homes
• Minimum Down Payment is 3.5%
• Rates are usually lower than Conventional but if you have good credit and down payment of 10% to 15% then FHA loans tend to be more expensive than Conventional 
• They allow for lower credit scores than conventional
• Have a maximum loan amount that varied by county but usually the maximum loan allowed is less than conventional.