A mortgage lender who works with the FHA is much more likely to approve you for a home loan because they know that if you default, FHA will cover the loss. This significantly lowers the risk factor for the lender. FHA Home Loan Requirements. Financial requirements for FHA mortgages are a little more lenient than conventional mortgages.

. insures mortgage loans for about 30% of today’s homebuyers. So if your home doesn’t meet FHA requirements, you could be cutting yourself off from almost one-third of potential buyers. Here’s how.

FHA appraisal requirements and those of other government-backed loans may require the completion of home repairs prior to closing. Or you may have to do an escrow holdback. Here’s what you need to.