FHA loans are the go-to loan for homebuyers in the United States. In fact, this loan program can trace its roots back to 1934 as this country's oldest loan program.

The FHA loan is designed to help reasonably qualified buyers achieve homeownership. This is achieved by requiring a comparatively low minimum down payment, allowing some leniency when concerning credit issues, and allowing flexible DTI thresholds.

For starters, the FHA requires only 3.5% down, so long as the borrower is qualified with a FICO score of 580 or more. Should a borrower have a FICO score lower than 580 but more than the minimum 500, they'll need to come to the table with a 10% down payment to offset their increased risk.

When it comes to DTI thresholds, the FHA manual establishes a 43% back end DTI as the target threshold, though well-qualified borrowers can push this into the mid-50's, so long as the automated underwriting system approves their risk levels, and they can demonstrate sufficient capacity to afford such financing.

FHA loans have a maximum seller concession of 6%. A buyer who successfully snags full seller concessions in their transaction will usually be able to have their closing costs completely covered and even secure a notable interest rate discount. That said, unless they have secured a spot within a down payment assistance program, they will need to come to the table with their minimum down payment, provided either from their own funds, or through a verified and approved gift from family or alternate entity.