FHA LOAN PROGRAM
Easy Qualification, Little Money Down
FHA (Federal Housing Administration) loans are federally-backed loans designed to give people who don't have good qualifications the opportunity to own a home.
What is a Federal Housing Administration (FHA) loan?
A Federal Housing Administration (FHA) loan is a government-backed mortgage issued by a bank or other agency-approved lender. FHA loans require a lower minimum down payment than many traditional loans, and applicants may have a lower credit score than normally required. The FHA Loan is designed to help low- to moderate-income families acquire a home. It is especially popular with first-time buyers.

Get Help from our FHA Loan Consultants Today!

FHA Loan History
Congress established the FHA in 1934, during the Great Depression. By this time, the housing industry was in trouble. Delinquency and foreclosure rates skyrocketed, 50% down payments were universally required, and ordinary wage earners couldn't meet mortgage terms. As a result, the United States was largely a renter's country, with only one in 10 homes owned by her.
The government created the FHA to reduce lender risk and make it easier for borrowers to qualify for mortgages. According to a St. Louis Federal Reserve Bank study, the homeownership rate in the United States has been steadily rising, reaching an all-time high of 69.2% in 2004. In Q1 2022, this rate was 65.4%.
FHA loans are designed primarily for low-income borrowers, but are available to everyone, including those who have access to a traditional mortgage. In general, borrowers with good credit and good financial standing are better off with traditional mortgages, while borrowers with low credit and high debt can benefit from his FHA loans.
FHA Loans | Key Takeaways
- FHA loans are home loans for certain borrowers who are having trouble getting credit from private lenders.
- The federal government guarantees his FHA loan.
FHA borrowers tend to be riskier and therefore have to pay higher interest rates and his PMI. - Banks are insured and willing to lend money to homebuyers with relatively low credit ratings and little money to buy.
- FHA loans are home loans for certain borrowers who are having trouble getting credit from private lenders.
The federal government guarantees his FHA loan. - FHA borrowers tend to be riskier and therefore have to pay higher interest rates and his PMI.
- Banks are insured and willing to lend money to homebuyers with relatively low credit ratings and little money to buy.
- First-time homebuyers may find an FHA loan to be the most affordable mortgage option.
- First-time homebuyers may find an FHA loan to be the most affordable mortgage option.