To qualify for an
FHA loan you must: Plan to live on the property (as opposed to buying it and renting it out), get an
FHA appraisal on the property (don't trust their inspection, though -have a second professional inspection of the property), and buy special
FHA mortgage insurance (paid for up-front with an initial payment of 2.25%, but if you take a class on home ownership and borrowing information, it can be reduced to 1.75%).