The Federal Housing Administration (FHA) offers a number of programs that promote home ownership. Because it requires a relatively small down payment, an FHA loan might be the perfect way for you to PURCHASE your first home, or your next home. FHA home loans are insured against home owner default by the FHA. This protects the lender from financial loss and increases your chances of being accepted. You are charged an upfront mortgage insurance premium that is included in your monthly payment.
You will likely be approved for a home loan relative to the market prices of homes in your search area.