FHA loans allow for down payments as low as 3.5% of the purchase price, making homeownership more accessible for individuals with limited savings.

Borrowers with lower credit scores may still qualify for an FHA loan. While exact requirements can vary by lender, it's possible to qualify with a credit score as low as 500, although a 10% down payment may be required for scores below 580.

Borrowers are required to pay for mortgage insurance, which protects the lender in case of default. This includes an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP) that's typically divided into 12 monthly payments. MIP is required for all FHA loans, regardless of down payment size or loan term.

FHA loan limits vary by location and are based on the cost of living in different areas. These limits are revised annually and can limit the amount you're able to borrow with an FHA loan.

The property being purchased must meet certain safety, security, and structural integrity standards as determined by an FHA appraisal. This appraisal is more stringent than a typical home inspection and is intended to protect the buyer and ensure the property meets HUD's requirements.