The Federal Housing Administration (FHA), was established around the great depression to help American consumers purchase homes. Today, the FHA loan program is one of the most popular options on the market with low down payments and easier requirements than most loans.
Key Features of an FHA Loan
Minimum down payment of just 3.5% of sales price
Down payment and Closing Costs may be gifted
No post closing reserves required
Higher Debt to Income ratios than most loans
Sellers may credit up to 6% of sales price
Less than two years on the job is allowed