An FHA loan percentage refers to the maximum amount of money a borrower can borrow with an FHA-insured loan. FHA loans are backed by the Federal Housing Administration, which makes them more accessible to homebuyers with lower credit scores and smaller down payments.
The FHA loan percentage varies depending on the location of the property and the number of units in the property. For single-family homes, the FHA loan percentage is typically 96.5%. This means that a borrower can borrow up to 96.5% of the purchase price of the home with an FHA loan.