FHALENDERDIRECTORY.COM

FHA stands for Federal Housing Administration. It was created by congress in 1934, right after the great depression, with a mandate to enhance homeownership. Back then, less than 40% of the people actually owned the homes they were living in... FHA does not directly originate or fund mortgage loans. Instead, they act as an insurer against any losses a FHA approved lender might incur on a mortgage written according to the FHA's guidelines. In order to maintain the corpus needed to run this home loan insurance program, the agency charges a small insurance premium to the borrowers obtaining financing through a FHA insured mortgage... The down payment requirements for borrowers opting for FHA loans are quite minimal. With as little as 3.5%, a new home can be purchased with financing from a FHA lender. Moreover, the credit, income and other qualifying guidelines are also quite reasonable and suit a wide spectrum of residential loan seekers.