Effective January 1, 2009 current FHA loan limits which have been $316,250 have been reduced to $271,050 and the required down payment has been increased from 3% to 3.5%.  Therefore, if you qualify, you can purchase a home for up to $279,400 with as little as 3.5% down on January 1, 2009, but you can buy a more expensive home with less downpayment now.  If you purchase a home soon, you could buy up to $325,000 with only 3% downpayment.  FHA financing is one of the most lenient mortgage qualifiers , with the only program that might be even more lenient being VA financing. Some primary qualifiers for an FHA loan are: One can not own another home with FHA financing at the present time (usually), and the home must be your primary residence.  Even folks with high incomes can qualify.  Give me a call at 520-615-2598 to start your home search.