FEDERAL HOUSING ADMINISTRATION (FHA)
FHA loans originate from the Federal Housing Administration and are insured by HUD (US Dept. of Housing) so that lenders can offer more affordable mortgage rates. FHA loans require lower down payments and closing costs. There are even options for financing 100% of the loan, and several grant programs that provide FHA loan customers financing for the down payment.
FHA loans offer options to those who’ve undergone bankruptcy or foreclosure. They’re available to first time home buyers, refinancers, and anyone who’s purchasing property and doesn’t already have an existing FHA loan. The guidelines for debt ratio and job qualifications are more lenient than a conventional loan.