The federal government and other state, local and private entities have developed programs to help you purchase a home with a low down payment. If you are a first time homebuyer or have low to moderate income, you may be eligible for a mortgage insured by the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA). While FHA does not make or buy loans, they insure FHA loans so that if you default on the loan, the lender will get reimbursed. You may be able to get an FHA loan with a low down payment of only 3% of the loan amount or less. While there are limits to the size of FHA loans, they are generous enough to handle moderately priced homes almost anywhere in the country.

FHA program is a great way for a LOW-Income family to enter into a Home. A Mortgage Professional can help you obtain easy to find financing.

Be sure to check with your mortgage professional if you qualify for government assisted programs that will lend you the remaining 3%.

FHA loans require more paperwork than do conventional loans. This type of loan, however, may suit you better. Always compare different types of programs to make sure you get the best one for you.

These HUD loans let you buy or refinance with a low down by not having income limitations or credit scoring, many people will qualify for a HUD home because they can afford the monthly mortgage payments and have reasonable credit.

FHA loans also offer borrwers "streamline" refinancing programs that allow the borrower to reduce their interest rate with minimal qualifying and refinance costs.

It's primary function, as an agency of the U.S. Department of Housing and Urban Development, is making sure mortgage loans are made by private lenders. The FHA makes the standards for putting together and underwriting loans, but does not lend money.

FHA loans are not credit score driven, but a borrower has to show responsibility and good credit history for the past 2 years.