Most first time home buyers do not want to come up with a 20% down-payment. FHA continues to provide low down-payment home mortgages that only require a 3.5% down payment.  According to 2010 FHA guidelines, first time home buyers and experienced home buyers a like can finance a home up to 97.5% loan to value.  If you want to buy a home without coming out of pocket for lender fees, FHA guidelines allow lender paid closing costs.  FHA lenders can pay for borrower closing costs but the FHA rates will be slightly higher as the closing costs are factored in.  In addition, FHA also allows gift money for FHA home loan transactions. This means that borrowers can utilize money from friends or family as the source of the down-payment.

Currently FHA does not offer a no money down mortgage option. In fact there is not any 100% home loans left in today’s market, with the exception of the VA home loan.  Of course this mortgage is only offered to active military and qualified veterans. Besides these military mortgages, FHA offers the closest thing to zero down home financing with a 97.5% home loan.

The FHA Home Loan Company is an FHA approved lenders that offers the full suite of FHA loan programs to borrowers in all 50 states.  Choose from FHA refinance, FHA streamline and FHA home purchase loan options.