The FHA

The FHA option is granted to first time homebuyers with an amount limit based on the geographical location of the home, and whether or not the home is a single or multiple dwelling building. They allow a borrower to obtain financing with only a 3% down payment. Traditional financing require 10%-20% down. The FHA federal home loan also allows the borrower to wrap all the closing costs into the mortgage. It is typically the responsibility of the home buyer to pay for all closing costs, unless negotiated otherwise.