For many first-time home buyers, the Federal Housing Administration (FHA) loan is a perfect choice. FHA loans are insured by the federal government and provide a number of advantages over traditional mortgage loans. These advantages include lower down payment requirements, easier qualification criteria, and more flexible credit qualifications. 

​

FHA loans also require mortgage insurance, which can make them an even more affordable option. The mortgage insurance can be paid as a lump sum at closing, or it can be rolled into the loan. This makes it easier for borrowers to budget for the cost of their loan.