If you are having second thoughts about buying a house amid the current housing crisis, Federal Housing Administration (FHA) loans may just make you change your mind.

FHA-insured loans are becoming more attractive to homebuyers these days. Borrowers have set their sights on federal insured loans because getting conventional loans from private institutions have become more difficult due to tighter lending procedures. As a matter of fact, 530,000 FHA loans were given to people who bought and refinanced their houses this year. The preference to FHA loans has caused a 160 percent increase compared to the same period last year.

FHA loans are among the best choices for homebuyers. It doesn’t matter if you are buying a home for the first time or planning to refinance your mortgage. These loans require you to pay only a 3 percent down payment—way cheaper than what private insurers demand for conventional loans. With a 3 percent down payment, you can save a lot of money that you can use for other things. In addition, you can make extra payments on your monthly mortgage payments so that you can pay off the loan at a faster rate and save money on interest.

There will be some slight changes though. The housing bill, which was signed into law in the latter part of July, will raise the down payment requirement for FHA loans to 3.5 percent. Don’t be disappointed because this increase is meant to prevent foreclosures in the future. The bill will also get rid of seller-funded assistance, a practice where sellers provide homebuyers money to pay for down payment.

You can be assured that these developments concerning FHA loans would not get in the way of the program’s goal of helping more people have access to decent and affordable homes.