The perfect loan for first time home buyers

FHA loans are insured by the Federal Housing Administration (FHA). With this program FHA-approved lenders reduce their risk of loss if a borrower defaults on their mortgage payments. FHA loans are very popular, especially with first-time home buyers, due to their low down payment requirements, flexible income, debt, and credit standards. With an FHA insured loan down payment and closing costs may be funded by a gift or grant.