The Federal Housing Administration (FHA) loans, which came into vogue in the aftermath of the Great Depression of 1930s, have become indeed very popular. The FHA loans are aimed at promoting home ownership. FHA loans are the loans issued by private lenders and backed by the Federal Housing Administration. FHA loans do not give much importance to credit score and moreover it does not require you to make big down payment. In other words, it is comparatively easy to qualify for a FHA loan, it is not to say that these loans are available for all and sundry.
FHA loans are insured by the FHA. Insurance provided by FHA implies that in case of default, a lender would not have to write off a loan. In case of default, FHA will come forward to help the lenders. Because of the guarantee offered by the FHA, lenders are willing to offer large amount of mortgage loans.
To qualify for a FHA loan is comparatively very easy. FHA loans are particularly suitable for the first time home buyers. It does not much take into consideration your income level in order to grant you a home mortgage loan. Down payment requirement for these loans is comparatively low. You should have reasonable debt to income ratio so as to become eligible for a FHA loan.