FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs. Contact us today for a FHA loan pre-approval. FHA loans can typically be approved with credit scores as low as a 550 FICO score. FHA loans typically will allow higher debt ratios then a conventional loan.