FHA loans do not come directly from the FHA. The FHA guarantees home loans, reducing the risk to lenders and offering increased borrowing power to qualified applicants. You may get better interest rates thanks to FHA home loan insurance.
FHA loans are particularly helpful for those who want a home, but have little or no money saved for a down payment; including those just graduating college, newly married couples, and also those who have had credit problems in the past.
Typically, FHA mortgages require a 3.5 %down payment. Unlike traditional loans, this money can also be a gift to the homebuyer and does not need to be secured as the homebuyer’s own money.