In other words, if you default on your loan, your lender will be covered by FHA insurance funding. This represents main reason why it's easier to qualify for FHA Loan Program.

Normally only criteria's that a lender will request in order to qualify for program include:

* 1. Credit Score. A credit score above 575, which is poor but moderate credit. Also, they will expect you not to have any derogatory accounts on your credit report. All past collections should be paid off upon submission of loan application.

* 2. Good and stable employment history. You will need at least two years at your current position and or two years of employment history in same line of work.

In 1998 Economics Professor and Nobel Prize winner Paul Samuelson (1915 - ) noted that, "Many people now believe that if they simply hold stocks long enough they will not, lose money for statistics have shown that since 1926 U.S. equity market has not suffered a loss in any given 15 year."

He called it a fallacy, and conceded that it is truly likely that if you hold stocks over long periods of time that they would tend to produce returns higher than other assets. But to believe that it is a God given statement ... Is simply not correct!

"Risk does not go to zero over long periods," but there are many articles that reflect how risk goes down longer time period. What is seldom introduced is fact that if there is a significant onetime loss, it can be monumentally overwhelming.

In any case Samuelson noted that: "The problem is that when stock prices do turn down (as inevitably happens even in strongest of bull markets!) your optimistic equity exposure can overwhelm your gut level risk tolerance, leading to poor short-term judgments and even outright panic!"