FHA funding

Typically FHA funding is granted through the traditional lending institution. In traditional mortgages, a 10%-20% down payment is required to secure the mortgage. With the FHA government home loan, a 3% down payment is all that is required. This makes an extreme difference in whether or not a person will ever be able to buy a house. For example: to purchase a $150,000 home, a traditional mortgage would require $15,000-$30,000 down. Low to moderate income families would never be able to save up this kind of money for the purchase of a house while paying rent. Through FHA government home loans, those families will only have to save $4500 to qualify.