The FHA loan has liberal qualification requirements, including lower credit scores and higher debt-to-income ratios. FHA is great for borrowers with non-traditional credit like self-employed borrowers. FHA has no income limit and has no geographic restrictions, typically has a lower down payment, lower monthly insurance premiums and often lower closing costs. The FHA loan is perfect for first time home buyers and families with low to moderate income levels. FHA loans can be used to buy an existing home, build a new one as well as refinance your home into a FHA mortgage.
Those interested in FHA loans may also be interested in USDA RD Loans which require no down payment.