FHA loans

fha insured home loansAn FHA insured home loan is one of the best loan choices available today for any homebuyer seeking a low down payment combined with relatively easy qualifying standards. The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD).

FHA does not actually make the loan. The loan is actually funded by an approved FHA lender in conformance with FHA lending guidelines.

FHA simply protects the lender from loss in the event of borrower default. By guaranteeing the loan, FHA is providing a type of federal assistance which helps low and moderate income homebuyers afford a home.

The FHA program was created in the 1930’s during the Great Depression as a tool to stimulate the US economy and stabilize the housing market. Since that time, many millions of low and moderate income borrowers have purchased or refinanced their homes using FHA loans.