FHA Mortgage Loan Eligibility

FHA Mortgage Loan Eligibility

An Introduction into the FHA Home Loan Program

The United States Federal Housing Administration offers mortgage insurance to back loans provided by an FHA-approved lender to better allow lower income Americans to be able to borrow money for the purchase of a home. There was a misperception that is common the FHA Residence Loan Program makes loans to borrowers, however in truth, they only insure loans produced by those authorized loan providers. This insurance coverage is agreed to protect loan providers in case a debtor defaults on that loan. The FHA Residence Loan Program started within the 1930s to counter the consequences associated with the Great Depression whenever foreclosures and defaults were typical. Continue reading FHA Mortgage Loan Eligibility