FHA loans can be an enticing option for first-time home-buyers.These Federal Housing Administration loans don't require the 20% down payment found in a standard mortgage and don't require pristine credit. Borrowers can put as little down as 3.5% down on the mortgage and stand to benefit from other perks like having their closing costs covered. Of course, there's the snag of extra private mortgage insurance to deal with: an upfront premium can cost borrowers 1.75% of the loan, and there's an annual premium between 0.5% and 1%. Those choosing the FHA route, as a result, need to be aware that interest charged over time is typically higher than on a traditional fixed-rate loan. But with down-payments so low, that might not be a deterrent.

If you liked this article you might like

Why Alex Rodriguez Is Investing in Billionaires Warren Buffett and Jeff Bezos

Former NY Yankees Slugger Alex Rodriguez Reveals One Juicy Investment Tip

What Could You Buy With What Johnny Depp Spends in a Month

Here Are the Top Stocks to Give as Gifts

What Sexy Company Will IPO Next?