FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA). FHA loans are available for single family and multifamily loans. These home loans allow banks to continuously issue loans without much risk or capital requirement. The FHA doesn’t issue loans or set interest rates, it just guarantees against default. The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable.

FHA loans allow individuals who may not qualify for a conventional mortgage to obtain a loan, specially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements. 

This loan is the best way to finance your home, as the Federal Housing Administration insures the loan. With an FHA Loan you can improve and refinance your home. 

The down payment for an FHA Loan is as low as 3.5% and the down payment can be minimal. Requirements for this type of loan are:

• Minimum credit score of 580 
• Flexible with debt-to-income ratio

Only available for purchasing a home and bankruptcy does not prevent you from receiving an FHA loan.