The FHA
There are no income limits, but there are restrictions on how much money you can borrow for the mortgages. The FHA requires everyone who wants loans to have good debt to income ratios and good credit. The reason why the FHA promises to pay lenders if the home buyer isn’t able to is because the FHA charges an upfront fee.
Before a homebuyer can get loans they must pay the FHA an upfront mortgage insurance premium of 1.5%, along with a small ongoing fee with each monthly payment. So, if the home buyer isn’t able to pay the loans, the FHA uses the collected insurance premiums to pay off the lenders. There are also many different Programs including fixed rate mortgages, adjustable rate mortgages, graduated payment mortgages, growing equity mortgages, energy efficient mortgages and mortgages for condominiums