Kim Nwachukwu gave you some very accurate informaiton. As a lender, I disagree with Jules Jacquart on doing an FHA loan, unless it's the only option for your son. Yes, the rate is great, however, with the mortgage insurance that is now being required, and soon to be higher, on FHA loans, a 3.250% is attractive, but the "effective" rate is closer to 5.00%. There are some advantages of doing an FHA loan, for instance, all of the funds, including the down payment can be gifted in the event you wish to help your son with the money to get into the house.
He needs to explore all of his options. One of them MAY be, if he is a First Time Home Buyer, a program that BBVA Compass offers that, to be honest, most Realtors don't even know about. If your son has credit scores over 680, the program is 5% Down Payment, NO PMI (mortgage insurance), a maximum loan amount of $417,000, and even though we collect an extra 3 months of taxes and insurance to guard against an escrow shortgage at the end of the year, the first payment isn't due for 4 months after the loan closes. In other words, if he closes on the property in April, his first payment isn't due until September 1. This gives him a lot of time to not have a rent or mortgage payment.
On top of all the advantages I just listed, just like an FHA loan, all of the funds for closing, INCLUDING the DOWN PAYMENT can be gifted by a relative. The rate is not that much higher than most 30 yr. fixed rates today, but, yes, it is a little higher, but the monthly payment is a LOT less than what he would be paying if he did an FHA loan. Trust me, I used to love the FHA loan, even bought my first house on one. But it is not the great loan today that it used to be. After analyzing the borrower's situation, I always present it, however, I haven't done one in over a year. There are better options in most cases.
Feel free to contact me at 972-705-2806 if you would like further information. And for all of you Realtors reading this, please give your first time buyers a different alternative than the FHA loan. I think once they compare the 2 programs, they will thank you for knowing about our loan. Ask your current lender if they will allow the 5% down payment to be gifted and then not make a mortgage payment for 4 months. I don't think they will be able to match it.