FHA provides government-insured loans, and right now is the easiest way to finance a house. Over the past few years, very few loans were being run through the FHA (1% for my broker, which is in the Top 5 nationally by volume), due to the number of sub-prime and other lenders offering better terms.
With the current state of the mortgage market, most sub-prime lenders are gone, and the traditional lenders are reducing LTVs and making qualifying much more difficult. I read earlier today that 74% of people who could qualify for a home mortgage two years ago, cannot qualify today.
FHA helps make home ownership easier. Their rates are better, and you can get up to 97% LTV, and up to 6% in gift funds or seller contributions may be used to close the loan, so you may be able to buy your house with no money down.
FHA may well be your best choice.
Good luck to you, and enjoy your new home.
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