Federal Housing Administration (FHA)
The establishment of the Federal Housing Administration (FHA) occurred in 1934 as part of bolstering economic conditions and assistance, in concert with the National Housing Act of 1934 and the New Deal. As of 1965, the FHA became part of the US Department of Housing and Urban Development (HUD). Since inception, the FHA has insured over 34 million mortgage loans and approximately 47,000 multi-family project loans. HUD and FHA currently insure 4.8 million single family mortgages and 13,000 multi-family projects.
It is important to note that this government entity is not a lender, but rather an insurance policy against potential losses suffered by lenders in the case of default. Each and every loan is insured by the FHA to potentially reimburse a lender if they incur a loss on a home or project that has FHA insurance.
- Down payment as low as 3.5%.
- Relaxed lending guidelines and credit score requirements.
- Can be paired with Down Payment Assistance
- FHA loans can be assumable by another qualified borrower.
- Quicker qualification, post bankruptcy or foreclosure.
If you are concerned with having to save a lot of money for down payment or have a bruised financial record, an FHA might be a great fit to help you own a home. Give us a call today or complete our loan application to speak with an expert about your options.