What is an FHA loan?1 of 9In the wake of the housing bubble's collapse, FHA loans have taken on renewed importance for today's mortgage borrowers.Simply stated, an FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.Because of that insurance, lenders can -- and do -- offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements.Following are seven facts all buyers should know about FHA loans. Related Articles:Fixing 3 FHA loan snagsFHA allows house flippingFHA loan costs risingWhat to know on FHA loanRelated Links:Low-down-payment loansUsing the mortgage GFEFind a mortgage rateHow to kill a loan closing advertisement
In the wake of the housing bubble's collapse, FHA loans have taken on renewed importance for today's mortgage borrowers.
Simply stated, an FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.
Because of that insurance, lenders can -- and do -- offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements.
Following are seven facts all buyers should know about FHA loans.
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