Now that most lenders require a mandatory 20% down payment, potential borrowers are frantically searching for alternatives. Fortunately, one of the best ways to make a small down payment is relatively easy: take out an FHA insured loan.

The FHA (Federal Housing Authority) is a government agency designed to help citizens purchase their own homes. While they do not give loans directly, they do insure loans from traditional lenders. Most major banks and mortgage brokers can help you take out an FHA loan.

The down payment on an FHA mortgage can be as low as 3.5% – in today’s market that’s outrageously low. Generally, FHA loans have rates comparable to other mortgages, and their fees are often lower. However, borrowers must pay monthly mortgage insurance fees.

More info on FHA loans can be found here:

Answers to Common FHA Mortgage Questions

FHA Mortgage Guide

FHA Loans Step-by-Step

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