Since 1934, FHA has been helping families become homeowners. FHA the Federal Housing Association is a part of HUD and they work with lenders to insure your loan. With the government standing behind your loan, lenders can offer lower down payment amounts, you can qualify for a loan quicker and easier and your closing costs will be much lower.

While most lenders generally require anywhere from 10 to 20% down, that amount can be as low as 3% with FHA. Another really good feature of an FHA approved loan is that the majority of closing costs and other loan fees can be included in with the loan amount. These two things alone mean that you can purchase a home without having to have a lot of money.

If you’ve had credit problems or even filed for bankruptcy, you might still be able to purchase a home through FHA. Again, since the government is insuring your loan lenders can be a little more lenient on credit history and other things.

You can also get very competitive interest rates with FHA. Many times their interest rates are much lower than conventional lending institutions. Before signing anything, make sure that you compare the amounts, terms and offers of different lending sources and FHA as well.

One of the best things about getting a FHA loan, is their foreclosure protection. FHA has several options that will help you retain ownership of your home is something happens and you can’t make your mortgage payments. If you lose your job or get injured and can’t work for awhile, most lenders won’t hesitate to foreclose and take your home.

If you have a home in mind that needs some work, FHA offers a loan that will give you the money to work on the house. They will also finance factory built homes and mobile homes, when many lenders won’t. They also have an loan that will include the costs of making your home more energy efficient.