Federal Housing Administration

Sam · Posted: Sat Apr 03, 2004 12:06 am Post subject: Federal Housing Administration

The Federal Housing Administration (F.H.A) is a federal agency within the U.S. Department of Housing and Urban Development (the H.U.D.). This agency does not loan money. It provides mortgage insurance i.e. offers protection to lenders against default by the borrowers.

Generally, the F.H.A. insured loans require that the homebuyer makes 3% contribution towards down payment and closing costs. F.H.A. loans offer several special benefits:

The borrower need not be a first time homebuyer.
No maximum income restrictions etc.

FHA sets standards for underwriting mortgages that must be met by a loan to qualify for the insurance. These standards include:

Mortgage insurance is required.
Property must be owner-occupied.

Also the F.H.A. operates a number of mortgage insurance programs involving low down payment which buyers can use to purchase a home.

To know more about FHA Loan and programs, click here

Related Article:

FHA Co-insured Mortgage

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