You must pay FHA mortgage insurance, which includes both an upfront fee as part of your closing costs and a monthly premium throughout the life of the loan. The property must meet strict requirements, being structurally sound and adhering to specific standards; thus, FHA loans may not be suitable for fixer-uppers. The property must be your primary residence, as FHA loans cannot be used for vacation or investment properties. Additionally, the maximum loan amount is limited and varies depending on the property’s location.
