FHA Loan
A mortgage insured by the Federal Housing Administration that allows low down payments and requires mortgage insurance premiums.
An FHA loan is insured by the Federal Housing Administration. It helps buyers with smaller down payments or lower credit scores qualify, allowing a down payment as low as 3.5 percent for qualifying borrowers. Because the government insures the loan, the borrower pays mortgage insurance premiums.
FHA charges an upfront mortgage insurance premium, which can be financed into the loan, plus an annual premium paid monthly.
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- VA Loan
A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, allowing no down payment and a funding fee instead of monthly mortgage insurance.
- Conventional Loan
A mortgage that is not insured or guaranteed by a government agency. PMI is required when the loan-to-value ratio is above 80 percent.
- PMI (Private Mortgage Insurance)
Insurance a conventional borrower pays when the loan-to-value ratio is above 80 percent, protecting the lender against default.
This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.