The facts about FHA loans

With the economy stalled and the housing market still sluggish, no one is sure what it will take to get buyers into new homes. Obtaining an affordable loan -- any loan, in many cases -- seems insurmountable. But there is a way.

Hello, FHA! These government-backed loans, which require smaller down payments and are easier to qualify for, are more popular than ever. The Federal Housing Administration currently insures 6.1 million single-family mortgages and 13,000 insured multifamily projects, according to the U.S. Department of Housing and Urban Development.

"FHA loans are more popular than ever because of the low down-payment requirement," says Mona Dehmohseni, broker and owner of AML Mortgage Associated Inc. in Van Nuys, Calif. "During the housing peak, I wrote no FHA loans. Now I'm writing three or four every month."