As of April 1st, 2010, FHA loans will require a minimum of 2.25% on the mortgage Insurance Premium to be added to the base loan. Sellers are now limted to 3% contribution towards buyer closing costs. The monthly premium will remain the same.  An exceptionwould be a shorter term loan such as a 15 year term with a 10% down payment.  FHA continues to provide a smaller dwon payment requirement and lower credit scores (620).

Down payments can come from a variety of areas (gift from relative, loan, 401k loan, gift from a non profit) and the are no reserve funds required.  An ideal loan for first time home buyers and those with credit challenges.  In fact, you can be out of Bankruptcy 2 years and possibly qualify for an FHA.