In recent years, more and more families have been taking advantage of the Federal Housing Administration, or FHA-insured mortgages. These mortgages are beneficial for a number of reasons, not the least of which is that they can help people who may be able to afford a mortgage payment but that don’t have a large chunk of cash for the down payment to buy a home.

The idea behind FHA mortgage insurance is to help families in the low and moderate income levels become homeowners. It does this by reducing some of the costs on their loans. In addition, FHA mortgage insurance helps to protect the lender, and encourages them to make loans to borrowers who may not be qualified to meet conventional underwriting metrics, but that are still otherwise in good credit.

These mortgages are designed to get families into homes with a relatively low down payment. A recent bill introduced in congress, however, could change the amount of a down payment that borrowers are required to put down for their home.  The bill would raise the down payment from 3.5 percent to 5 percent, and it would also prevent homebuyers from financing their closing costs in the loan, as well. In many cases, this can make the amount of money a buyer would have to put down jump from the current 3.5 percent all the way up to around ten percent – five percent for the down payment, plus five percent for closing costs.

This new bill is authored by Representative Scott Garrett of New Jersey. On his website, it states that the bill “is aimed at shielding taxpayers from the risk that the FHA portfolio presents.” It’s not clear yet how much support Garrett’s bill will have in congress, but many people in the mortgage industry as well as many potential homebuyers are watching to see what exactly will happen.

If you’re interested in getting an FHA loan before these kinds of changes take place, there are some things you can do to get ready to apply.

Understand that, even with FHA loans, each lender is responsible for setting its own terms and rates, so comparing lenders is imperative if you’re going to get the best deal.

You also need to realize that an FHA loan, like other mortgages, is going to assess your situation to determine how much of a risk you are. The lender is going to look into your credit history to see how well you do paying other debts. The lender will also take a look at the ratio of your income to your debt in order to decide what kind of monthly payment you can afford.

There are some specific documents you’ll need to get together to apply for an FHA loan. You’ll need documentation of two years employment in the same field. Your credit score will need to be above 620, although some borrowers will qualify for FHA loans if their credit score is between 580 and 620. You should make sure you get a copy of your credit report and that you take steps to correct any errors before applying for an FHA insured mortgage.