Final answer:
Yes, an FHA loan can be granted to buyers with no down payment. However, buyers who choose this option will need to obtain mortgage insurance.
Step-by-step explanation:
An FHA loan can be granted to buyers with no down payment. While a general rule of thumb for homebuyers is to put down 20% of the purchase price, FHA loans allow for a down payment as low as 0-3.5%. However, buyers who choose not to make a down payment will be required to obtain mortgage insurance, which is an extra fee included in the cost of the home to protect the lender in case of default.