While many families feel that a low to moderate income and less than perfect credit score prevent them from buying the home that they want, the Federal Housing Administration (FHA) is a government-sponsored program designed to keep you in the housing market.

The FHA first began in 1934 as foreclosures were becoming more common all across the country.

Because so many people were left with bad credit, there was little hope of ever becoming a homeowner. However, the FHA has made great strides in making this a possibility.

The most attractive reason for getting an FHA loan is the down payment requirement. It’s often as little as 3.5%, whereas other programs require 10%, 15%, or even the full expected 20% by the closing date. They also offer fixed-rate loans, which means the interest rate does not fluctuate or change over time.

With an FHA loan, down payments and closing costs can be paid through a gift or a grant, which is not typically allowed through more conventional programs.

While the loan limits vary by county and state, they’re also higher than the national average. This way, you can receive a bigger mortgage for when you need a larger property or space.

Low income families can also take advantage of the programs the FHA has to offer. This includes the 3.5% down payment, a more lenient debt to income ratio, the use of a co-signer, and they do not require you to have additional funds in the bank after closing.

It’s worth looking into an FHA 203k loan if you’re an avid fan of Do-It-Yourself projects. If you’re willing to take on responsibilities with a property that needs a little extra love, this loan might be for you. Projects include the repair or replacement of the structure and foundation, flooring, basic finishing and remodeling, room additions, and more. Take note that “luxury” additions (such as a hot tub) is not considered for this type of loan.


You can finally break into homeownership with the help of the FHA. Feel free to explore the options they have to offer at www.fha.com.