FHA loans are a decent option, but not the best in all cases. Fannie Mae now allows qualified buyers to purchase with either 3 or 5% down, and in many cases, the PMI is less than FHA's. You should examine both options to compare. Your biggest challenge may be meeting debt ratio requirements, particularly if your only income is Social Security. I'd highly recommend talking to a lender and having him/her compute your debt to income ratio before getting much further into the home buying process.