what is an FHA loan?

An FHA home loan, or FHA-insured mortgage, is a type of home loan that is backed by the Federal Housing Administration (FHA). The FHA provides FHA Mortgage Insurance, which protect lenders against losses as the result of a borrower defaulting on their mortgage loan.

Since FHA loans are lower risk for lenders than conventional home loans, FHA-approved lenders, like FHA Loan Spot.com can provide FHA loans with lower interest rates and lower monthly payments, even if you have less than perfect credit. In addition to the money saving benefits, FHA loans are also easier to qualify for than conventional loans, because of less rigid underwriting guidelines.

If you have any questions about FHA loans and how you can qualify, please feel free to contact one of our FHA loan specialists at 1(888) 892-1858, or check other topics of our FHA Help Center.

FHA mortgage insurance

FHA mortgage insurance is provided by the Federal Housing Administration (FHA) for FHA-approved lenders. FHA mortgage insurance protects lenders against losses as a result of homeowners defaulting on thier mortgages loans. The lender bears less risk because the FHA will pay a claim to the lender if the homeowner defaults.

Conventional home loans must follow strict underwriting guidlines, because of the risks incurred by the lender. Since FHA mortgage insurance reduces the risk for the lender, FHA-insured loans require very little cash investment to clost a loan compared to conventional home loans. There is also more flexibility in calculating household income and payment ratios, meaning that FHA loans are typically easier to qualify for. The cost of FHA mortgage insurance in passed on to the borrower in terms of monthly payments, however in most cases the insurance cost to the homeowner diminishes after 5 years or when the balance is 78 percent of the property value.

If you have any questions about FHA loans and how you can qualify, please feel free to contact one of our FHA loan specialists at 1(888) 892-1858, or check other topics of our FHA Help Center.

FHA loan limits

The Federal Housing Administration (FHA) sets limits on FHA mortgage loans that they will ensure. The amount that the FHA will insure depends on your area and the type of FHA loan that you are looking for. Loan limits are set for both FHA-insured traditional forward loans, and FHA-insured Home Equity Conversion Mortgages (HECM) reverse loans. To calculate FHA mortgage limits in your county, you can use our FHA Loan Limit Calculator or use the FHA Loan Limit calculator provided by the HUD.

If you have any questions about FHA loans and how you can qualify, please feel free to contact one of our FHA loan specialists at 1(888) 892-1858, or check other topics of our FHA Help Center.

FHA loan history

The FHA or Federal Housing Administration was created by congress in 1934, and became a part of the Department of Housing and Urban Development (HUD) in 1965.

Throughout its history, the FHA has helped millions of Americans become homeowners. Since it was founded, the FHA and HUD have insure over 34 million home mortgages. The FHA currently insures 4.8 million single family mortgages.

The FHA is entirely self-funded from the proceeds from mortgage insurance paid by homeowners and cost taxpayers nothing. FHA provides economic stimulation to the country by helping to develop homes and communities, which contributes to local communities in the form of jobs, building suppliers, tax bases, schools, and other means of revenue.

If you have any questions about FHA loans and how you can qualify, please feel free to contact one of our FHA loan specialists at 1(888) 892-1858, or check other topics of our FHA Help Center.