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FHA mortgage
A loan with certain restrictions that is guaranteed by the Federal Housing Administration FHA mortgages may be easier to qualify for since they require a low down payment, usually about 3% of the loan amount, and may offer low interest rates. The catch is you can only borrow up to a certain amount, and you have to pay both an up-front and monthly premium for insurance. The up-front cost, usually 1.5 - 2% of the loan amount, can be lumped onto the loan and paid off over time. To be eligible you must plan to live in the home that you purchase.

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