What is the main appeal of FHA loans to the borrower?

The main appeal of FHA loans to borrowers is the minimum down payment requirement. FHA loans are designed to help low to moderate-income individuals and families achieve home ownership, particularly for those who may not have accumulated significant savings for a large down payment. FHA loans typically allow borrowers to secure financing with as little as 3.5% down, making it much more accessible for those who might struggle to meet the higher down payment requirements of conventional loans. This feature makes home ownership more attainable for many, especially first-time homebuyers or those with limited financial resources.

While low-interest rates, easy accessibility, and other features can also be beneficial aspects of FHA loans, the minimum down payment stands out as a defining characteristic that directly facilitates the ability of borrowers to enter the housing market.