FHA loans are insured by the Federal Housing Administration (FHA) and an excellent option for first-time homebuyers and borrowers with a lower credit score who may not qualify for conventional financing. They offer programs with a 3.5% down payment, and gift funds from family members are allowed to help with closing costs. This financing is available only for purchasing a home in which you intend to live as your primary residence, and loans must conform to FHA Loan Limits. If you currently have an FHA mortgage, there are also refinancing options available, as well as home improvement programs.