|
What is a Federal Housing Authority Loan?
The Federal Housing Authority (FHA) was created
by the National Housing Act of 1934 to help revive
and stabilize a housing market devastated by the
Great Depression and the breakdown of the banking
system. It did so by providing federally backed
mortgage insurance, first for construction loans
and then long term mortgages. By meeting credit
history and down payment criteria established
by FHA, a borrower can obtain a 20 year fully
amortizing mortgage loan.
The Department of Housing and Urban Development
(HUD) authorizes the Federal Housing Authority
(FHA) to insure lenders against foreclosure loss
for any residential mortgage that does not exceed
Congressionally set loan amounts.
Eligibility
FHA financing may be used by any qualified
person, whether or not a US citizen. However,
the property must be the borrower's principle
residence; the borrower must live in the home.
The borrower must also have a social security
number.
Advantages of a FHA Loan
- Low down payment
- An assumable mortgage subject to approval
of assumer's credit
- Right to prepay loan without penalty
- Ability to finance closing costs
For more information, check out our FHA
Loan section or contact
us to find out more information about FHA
Loans!
|
