The FHA is here to help you attain a mortgage.
The Federal Housing Administration (FHA) is an agency of the federal government which is a part of the Department of Housing and Urban Development (HUD). The FHA insures private loans that are issued for new and existing housing, and loans that are approved for home repairs. The purpose of the FHA includes helping borrowers get qualified loans and assisting lenders by reducing their risk in issuing loans.
What kind of loans does the FHA provide?
The FHA can provide several types of loans: traditional Fixed Rate Loans, Adjustable Rate Mortgages (ARM), Energy Efficient Mortgages, Graduated Payment Mortgages, Mortgages for Condominium Units, and Growing Equity Mortgages. To learn more about these types of mortgages, go here.
What is FHA mortgage insurance?
FHA mortgage insurance protects lenders against loss if the homeowner defaults on their mortgage loan. The lenders bear less risk because FHA will pay the lender if a homeowner defaults on their loan. Loans must meet certain requirements established by FHA to qualify for insurance.
What else do I need to know about FHA loans?
You must qualify for an FHA loan. That will require some paperwork, as well as a good credit and financial standing. YOu can find more tips on FHA mortgages here.