What Is a Federal Housing Administration Loan (FHA) Loan?
A Federal Housing Administration (FHA) loan is a mortgage that is insured by the Federal Housing Administration (FHA)
and issued by an FHA-approved lender. FHA loans are designed for
low-to-moderate-income borrowers; they require a lower minimum down
payment and lower credit scores than many conventional loans.
In 2020, you can borrow up to 96.5% of the value of a home with an FHA
loan. This means you'll need to make a down payment of 3.5%. You'll need
a credit score of at least 580 to qualify. If your credit score falls
between 500 and 579, you can still get an FHA loan as long as you can
make a 10% down payment.1 With FHA loans, your down payment can come
from savings, a financial gift from a family member, or a grant for
down-payment assistance.
There are two professionals every business will need early on: an accountant and a lawyer.
The reasons for hiring an accountant are pretty obvious--you need
someone to help you set up your "chart of accounts," review your numbers
periodically, and prepare all of your necessary federal, state and
local tax returns. The reason for hiring a business attorney may not,
however, be so apparent. A good business attorney will provide vital
assistance in almost every aspect of your business, from basic zoning
compliance and copyright and trademark advice to formal business
incorporation and lawsuits and liability. First, some general rules
about dealing with lawyers:
If you are being sued, it's too late. Most small businesses put off hiring a lawyer
until the sheriff is standing at the door serving them with a summons.
Bad mistake. The time to hook up with a good business lawyer is before
you are sued. Once you have been served with a summons and complaint,
it's too late--the problem has already occurred, and it's just a
question of how much you will have to pay (in court costs, attorneys'
fees, settlements and other expenses) to get the problem resolved.
