The FHA or Federal Housing Administration was formed in 1934. The main aim of FHA is to help the lower and middle income families for realizing their dream of having an own house. The main job of the FHA is to provide protection to the debtors from the mortgage lenders.  FHA mortgage is a loan insured federally and provided by lenders who are qualified by FHA.  These loans help an individual to purchase their dream home. FHA mortgage has a lower down payment as well as lower requirements of credits.

The least amount for down payment for FHA mortgage has been raised from 3% to 3.5% from January 1, 2009. Though they have increased the down payment rates, it is still less than the rates of 5% provided by non FHA mortgage programs.  Therefore, this loan program is not for the person who want only 3.5% down payment.  FHA mortgage guidelines apply their common sense to make sure that the debtors can afford to pay back the loan easily. Its main goal is to promote ownership of home to the borrowers who are qualified for the same, moreover,  it is still fulfilled by the loans insured and that can accept a much lower down payment and for those who have less or more than less perfect credit.

Borrowers are required to quality the following requirements in order to qualify for FHA mortgage 

• The applicant must have had a property and resided there for at least 12 months before filling the loan application.  
• The applicant should be accurate with payments of mortgage and should not have any late payment record.  
• The property that is being refinanced should have been a 1 or 2 unit as private residence.
• Non-occupant owners cannot be added to the mortgage. Any co-borrower should be the resident of that state.
• All other existing rules for mortgages must be secondary to the new FHA mortgage.
• The mortgage that is being refinanced should be a FHA insured.

In this internet age, you should not forget to cross check your quotes with the various other service providers who are in the field of mortgage and loans. These mortgage loans are enormously popular amid first-time home buyers for several reasons, like, you do not have to pay more down payments for this loans or the qualification process for this loan is quite easier compared to other conventional mortgage.   

 If you want to use mortgage for purchasing your home, you have to first find out a FHA approved money lender with whom you can submit your application. You can easily find these FHA qualified money lenders through the internet. In fact it is your duty to find out a qualified lender, the duty of these mortgage lenders is find out the credit of the borrower and whether he meets the guidelines provided by the FHA.

So, it is necessary to do some homework before getting into the mortgage loans of FHA and a systematic analysis of your budget will definitely help you to get a FHA mortgage.