At the same time, FHA mortgage insurance premiums are usually more expensive than conventional private mortgage insurance (PMI) and can’t be avoided regardless of your down payment amount.
Backed by the Federal Housing Administration, FHA loans only require a 3.5% down payment with credit scores as low as 580, and even allows for scores as low as 500 with a 10% down payment. At the same time, FHA mortgage insurance premiums are usually more expensive than conventional private mortgage insurance (PMI) and can’t be avoided regardless of your down payment amount. Still, there are no income limits on FHA loans.