The most basic form of FHA Mortgage is for a buyer who has a down payment of 3.5% or more. There is a common misconception that FHA Mortgages are only for first time home buyer. This is not the case, as you can buy more than once using a FHA Mortgage. The stipulation is that you cannot have more than 1 FHA Mortgage at a time, so you must pay off the previous one at or before closing. All FHA Mortgages have a Mortgage Insurance Premium (MIP).