What is an FHA Loan?
A Federal Housing Administration (FHA) loan is a government-insured loan designed to make purchasing a home or refinancing an existing mortgage more affordable. With an FHA loan, a borrower without ideal credit can obtain a home mortgage with as little as a 3.5 percent down payment.
Though FHA loan aren’t issued by the federal government, they are backed by it. Should a borrower be unable to repay the loan, the FHA will fully reimburse the lender. This allows FHA-approved lenders to provide home financing to less-than-affluent borrowers who might otherwise be unable to attain a loan.
Since its inception in 1934, the FHA, an agency of the United States Department of Housing and Urban Development (HUD), has been helping Americans achieve their dreams of becoming homeowners. Over the years, the FHA loan and HUD have insured over 47.5 million home mortgages and 48,500 multifamily project mortgages. As of 2018, the FHA’s portfolio includes 7.95 million insured single family mortgages and 14,452 multifamily mortgages.
The FHA has been instrumental in making Americans among the best-housed people in the world and we at Global Equity Finance are proud to contribute to this great legacy.