FHA Mortgages are insured by the Federal Housing Authority. FHA Mortgages are great for buyers who don't have a big down payment. The minimum down payment for FHA Loans is 3.5%. It also allows for a family member to gift or give you the down payment allowing parents to help their kids purchase a home. The program also allows for sellers to pay up to 6% of the purchase price of the home towards the closing costs. Product is also great for refinancing when you don't have equity in your home.