This is commonly used for First-Time Home buyers. Like many other loans, it has pros and cons.  One of the pros is that it has great interest rates.  Currently, one of the cons is that a 30-year loan has mortgage insurance for the life of the loan, no matter how low the loan-to-value is.

FHA is good for first time homebuyers that can put 3.5% down.  It does allow for higher debt to income ratios than many of the other programs, works well on manufactured homes, and is a good option on 2-4 units properties where the owner will still be living in one of the homes. Click here to compare options.