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 homes up to four units. The FHA doesn't issue loans or set interest rates, it just guarantees against default.
FHA loans allow individuals who may not qualify for a conventional mortgage to obtain a loan, especially first time home buyers. These loans offer low minimum 3.5% down payments, reasonable credit expectations, and flexible guidelines. Down payment can be 100% Gift funds.