Fha loans are government loans. They are not based off of credit score however many banks will not fund them if your score is lower than 580 without them being manually underwritten. Your debt to income ratio has to be decent. Their is a monthly insurance premium on every single FHA loan, however it is less than what you would pay conventionally for PMI. There is also an upfront financing fee. Your taxes and insurance have to be included. The rates are very competitive, and I believe like most loan officers that FHA has really taken over for the collapse of the subprime market. If you looking to qualify I would contact an experienced loan officer than does FHA loans frequently.