When most people think of a home loan, they often think of something more straightforward, like a conventional loan. At Pineywoods Mortgage, we’re here to tell you that’s not your only option, as many homeowners that struggle to qualify for conventional loans have been able to purchase a home through the use of an FHA loan.

The National Housing Act of 1934 established the Federal Housing Administration, which is the government body that manages FHA loans. The part of the FHA that deals with home mortgages is intended to help those who normally wouldn’t qualify for a home purchase to buy a home.


FHA loans are intended to help first-time homebuyers and others who are struggling to qualify for a conventional loan, not necessarily investors who are looking for investment properties. It’s important to note that FHA does not lend you the money itself. FHA is a facilitator, meaning it backs the mortgage you receive from an FHA-approved lender. Fannie Mae and Freddie Mac do not originate FHA loans, but they are big companies that buy mortgage loans through the secondary market that are backed by the federal government.

These popular loans are insured through the Federal Housing Administration. They give you the ability to put less money down, and to sometimes use funds from a gift or a grant toward your down payment. They’re also available for people at virtually any income level. To be eligible, you’ll need a minimum credit score of 580, and your down payment needs to be a minimum of three-and-a-half percent. Additionally, you need to be able to afford to pay your mortgage insurance up front, and for the term of the loan.

Pineywoods Mortgage in Tampa is in the mortgage business to make dreams come true. When you partner with a mortgage broker like us, we will work with lenders that will fund FHA loans or VA loans (Veterans’ Housing Authority). Below, we’ll review exactly how FHA loans or VA loans can help you in your home purchase. Contact us today!