If you want to purchase a home but do not have the funds for a large down payment, FHA may be the best option for you.
Federal Housing Administration (FHA) loans are federally-backed mortgages with lower down payments and have more flexible approval requirements than some conventional loans. With FHA loans, your down payment can come from savings, a financial gift from a family member, or a grant for down-payment assistance. In order to secure the guarantee of the FHA, homebuyers that qualify for an FHA loan are also required to purchase mortgage insurance, and premium payments are made to FHA.