Federal Housing Administration (FHA)
The Federal Housing Administration (FHA) is a government agency that provides mortgage insurance on loans made by FHA-approved lenders. The FHA insures loans for single family and multifamily homes, as well as manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. The FHA is part of the United States Department of Housing and Urban Development (HUD).
History of the FHA
The FHA was created in 1934 as part of the National Housing Act. Its purpose was to provide mortgage insurance on loans made by approved lenders, to help borrowers obtain financing for the purchase of a home. The FHA insured loans made to borrowers who could not otherwise qualify for conventional financing. This allowed more people to become homeowners and helped to stimulate the housing market. The FHA has since grown to become the largest insurer of mortgages in the world.
Comparison of FHA and Conventional Loans
| FHA Loan | Conventional Loan | |
|---|---|---|
| Down Payment | 3.5% | 5-20% |
| Credit Score | 580+ | 620+ |
| Mortgage Insurance | Required | Optional |
| Loan Limits | Varies by county | Varies by county |
Summary
The Federal Housing Administration (FHA) is a government agency that provides mortgage insurance on loans made by FHA-approved lenders. The FHA was created in 1934 as part of the National Housing Act, and has since grown to become the largest insurer of mortgages in the world. FHA loans are popular among first-time homebuyers due to their low down payment requirements and flexible credit score requirements. For more information about FHA loans, visit the HUD website or contact an FHA-approved lender.
See Also
- Mortgage Insurance
- FHA Loan Limits
- FHA Streamline Refinance
- FHA 203(k) Loan
- FHA Reverse Mortgage
- FHA Cash-Out Refinance
- FHA 203(b) Loan
- FHA Loan Requirements
- FHA Loan Calculator
- FHA Loan Limits by County
