The Federal Housing Administration currently provides funds for one-third of all mortgages in the U.S. It's a very popular optionfor qualified homeowners who don't have large amounts of savings for a down payment.
If you're a qualified buyer (credit rating, work history, income all count), you can still get an FHA loan with a 3.5% down payment.
But in an effort to protect itself from risk (buyer default), FHA is raising the monthly cost of mortgage insurance (paid by the buyer). Depending on the loan, the monthly payments will increase, which means you will pay more for your home
If you are thinking of buying, you will save on your monthly payments if you can make a commitment before April 18. Here's a brief video outlining the policy.
