The number of home owners who will purchase a home with financing through an FHA backed loan is likely to double over last years numbers. FHA loans provide a great opportunity to help home owners purchase property. They have minimal down payment requirements (3%) of which all could be in the form of a gift, are not driven by credit score and offer competitive fixed interest rates. The role of FHA loans is likely to grow and will be a catalyst in helping the housing market to correct itself. FHA loans are not offered by every mortgage lender and their interest rates are determined by similar factors as conventional interest rates. Their are some other unique advantages with FHA loans such as a minimal monthly mortgage insurance payment that is not adjusted for your credit score. FHA mortgages are likely to help more home buyers purchase their first home over the next twelve months than in the past 3 years. If you own a home you can also explore refinancing with an FHA mortgage loan as they follow similar guide lines.

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