When you hear the words FHA mortgage, most people think of a mortgage process nighmare from years past. Like with everything times change.. and so do mortgage products. I believe that FHA may be the mortgage choice of many in the future. Many buyers today are not qualifying for loans due to the Sub Prime collapse. In the past few years, mortages for buyers with 500 fico scores and no documentation were common. Today, this is almost impossible. So, what do buyers with recovering credit to do? Go FHA! Today's FHA is not based on a credit score. 480, 500, 550.... it doesn't matter. The only factor FHA mortgage underwriters look at are debt to income and open collections. So, if a buyer with a low fico score because of a job loss a year ago applies for a FHA mortgage, as long as there are no open collections and the debt to income ratio is 31/43 the loan is approved. The greatest thing about the new FHA's is the interest rate, which is usually only 1/4 point higher then conventional mortgages. This can save a borrower thousands over the term of the loan. The new FHA also have relaxed the inspections as well. This is definately not your fathers FHA!