FHA home loans are government backed loans.
Which means the government gives the bank a guarantee to take a chance on you.
Non FHA (non government backed) lenders have a greater risk, so may have more stringent requirements.
Here is some information on a couple of popular FHA home loans.
Is a loan that allows all the flexibility of a traditional FHA loan with the addition of a home improvement loan up to $35,000.
This loan is perfect for purchasing foreclosure, fixer upper, REO or distressed type properties that you attend on occupying.
Most all types of improvements are allowed, with the exception of structural or luxury items.
There is no third party inspection on repairs up to $15,000, which means as long as your repairs are less than $15,000 you can do just about anything you want with in reason.
FHA Home Loans
Is a traditional FHA home loan which offer lower down payments and more flexible requirements than conventional bank loans, which in most cases makes it easier to qualify.
This type of loan allows non traditional credit history, alternate credit sources and lower credit scores than most conventional banks.
Also there is no minimum or maximum income restrictions required to qualify for a FHA home loan.
Cash out refinancing is allowed up to 85% LTV, which means you can get cash back up to 85% of your loan to value (appraised value).
Both loan types require 3.5% down payment and allow loan amounts up to the Jumbo FHA limit in your area.
The rumor that FHA home loans is only for first time home buyers is not true, they are for everyone, however there may be special offers for first time home buyers.
There are also several different type of FHA loans for remortgaging, home remodeling or new purchase loans.
Ask your lender about both FHA and conventional type loan products to find the most beneficial loan product for you.