W ith lenders clamping down in response to the mortgage meltdown and tightening of credit, what’s a first-time home buyer to do?

Conservative buyers and lenders gravitate toward some basic long-time principles such as putting 20 percent down and scheduling your mortgage payment, taxes and insurance at not more than 35 percent of your gross monthly income.

An FHA-backed loan may also be a good option to explore.

The Federal Housing Administration was established in 1934 and is a division of the U.S. Department of Housing and Urban Development. It doesn’t make loans directly, but rather insures FHA-approved lenders against default.

This year, the FHA has insured almost a quarter of all new loans with the vast majority being first-time buyers. It now insures about 5.3 million mortgages, compared to four million three years ago.

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