FHA (Federal Housing Authority) is a government agency that insured the mortgage loan from the lender or the bank. They also help first time home buyers purchase a house with only 3 to 3.5% down payment if they qualify for a FHA loan. With conventional loans today, a lender wants at least 20% down because of the current market condition. They want to be on the safe side in case the borrower defaults in their payments. There is nothing an appraiser like me can do. I am an approved FHA appraiser and attended seminars on the recent FHA appraisal guidelines. For more information on FHA loans visit: http://www.hud.gov/buying/loans.cfm
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