The American dream is not complete—not by a long shot—if you have not made the first payment for your house. First-time home buyers are the icing of the mortgage industry and are often the most sought after type of borrower by commercial banks. Over the past decade or so, there has been an increasing number of first-time buyers choosing mortgage loans insured by the Federal Housing Administration over traditional loans. Note, however, that borrowers are still required to pay mortgage insurance premium on the FHA loan because unlike the conventional loan, it does not have very strict standards and eligibility requirements. Well, the reasons are quite straightforward. The first is that requirements to qualify for the FHA loan are not as strict as those for conventional loans. Secondly, with a payment of as low as 3.5 percent and a credit score of 580, a borrower can get a great loan with very friendly terms. Thirdly, the loans are insured by the federal government meaning that lenders do not shoulder all the risk in the event the borrower defaults on payment. Over the decades, this has brought in more investors who have injected the much-needed funds into the FHA lending system.