Originating during the Great Depression, Federal Housing Administration-based mortgages, or FHA, are provided by approved lenders to individuals that couldn’t obtain financing using conventional means. Geared towards lower income Americans, these loans are often chosen because down payment requirements are much lower, credit restrictions are less stringent, and many programs can assist new families to get into these homes for nearly nothing. FHA is considered insurance, not a direct source of funding. Also, those with FICO scores less than 640 can obtain financing, but with higher interest rates. Another great feature of these loans is that the home seller can actually cosign the FHA loan under the Non-owner occupied co-borrower section of FHA lending rules.