For many first-time home buyers, a Federal Housing Authority (FHA)-backed mortgage makes buying a home easier – or possible – thanks to less-rigid borrower requirements:

  • A low minimum down payment (currently 3.5%)
  • Reasonable credit expectations
  • More flexible income requirements

Compared with conventional home loans, providers of FHA loans are willing to look at the entire picture rather than declining a borrower for falling short on particular criteria.