An FHA mortgage is a government-backed home loan with more flexible lending requirements than those for conventional loans. Because of this, interest rates for FHA mortgages may be somewhat higher, and the buyer may need to pay monthly mortgage insurance premiums along with their monthly loan payments. FHA loans are.
Essentially, the process involves applying for a new mortgage that’s larger than the current total balance you owe. % of your home’s value — but you would need to pay private mortgage insurance.