The Federal Housing Administration (FHA) runs several lending programs that can help homebuyers with limited credit or income, including first-time homebuyers. Government-insured FHA home loans – which come as fixed-rate or ARMs – offer affordable interest rates, a low minimum credit score and a down payment as low as 3.5 percent. 

Benefits of an FHA loan:

• As low as 3.5% down (10% down based on your credit score)
• Financing for manufactured homes
• Multi-family up to four units, owner occupied purchase & refinance
• Lender credits - you could save thousands
• Streamline refinance

Borrower requirements for an FHA loan:

• 580 minimum credit score*
• Debt-to-income ratio of 50% or less
• Two established credit accounts (examples: a credit card and a car loan)

*with compensating factors