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What is an FHA loan?

by andrew@do from Orange, North Carolina. Jun 12th 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

it\'s a loan where the Federal government insures the loan against default.. If you get an FHA loan and you stop paying and the lender has to foreclose, their loss will be reimbursed by the federal government (less a deductible).. FHA offers financing with 3.5% down, however you as the borrower pays the insurance premium monthly and it\'s added to your principal and interest payment.. here\'s the Wiki definition for your review..http://en.wikipedia.org/wiki/FHA_insured_loan .. I’m a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 12th 2013
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James Kneeland (JamesKneeland)
#1 ranked lender in North Dakota - 10 contributions

An FHA loan is a loan which is insured and backed by the Federal Housing Administration and has been put in place to help borrowers with little down payment and not such great credit to buy their homes.

Jun 12th 2013
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Adrielle Edwards (AdrielleEdwards)
#907 ranked lender in California - 96 contributions

An FHA loan is insured by the federal government. This mitigates the risk to lenders and therefore gives them the ability to loan to those who qualify for an FHA loan with less strict lending standards. For example, instead of the usual 20% down payment, an FHA loan only requires a 3.5% down payment, making this a very attractive options for those who do not have a large amount in savings or live in high prices areas. Lenders are also more lenient in terms of the borrower's income and how much other debt they already carry. The downside to an FHA loan however, is that the borrower must purchase mortgage insurance which is added to their monthly payment. It is best to discuss your individual situation with a mortgage banker and decide what your best option is. I am a mortgage banker in San Diego and am licensed to lend anywhere in California. If you have any questions or would like to discuss your options, please email me at adrielle@californiamortgagedirect.com and we can set up a time to talk on the phone.

Jun 12th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

The Federal Housing Administration, generally known as "FHA", that falls under the purview Housing and Urban Development "HUD" , provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world.FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner's default. Loans must meet certain requirements established by FHA to qualify for insurance. Unlike conventional loans that adhere to strict underwriting guidelines, FHA-insured loans require very little cash investment to close a loan. There is more flexibility in calculating household income and payment ratios. The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment.

Jun 13th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,869 contributions

FHA loans - are mortgage loans backed up with a little bit of insurance from the government to help mitigate any loss a lender may suffer if you default on the loan. because of this, lenders are a little more willing to offer loans to more marginal clients, and allow a smaller down payment than many other loans. www.JoeMetzler.com/fhaloans.htm

Jun 13th 2013
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Manuel Gonzalez (mmortgage1)
#91 ranked lender in New Jersey - 89 contributions

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory All of your questions answered at the click of a button. Feel free to reach me if you have any other questions.

Jun 12th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Best choice for first-time homeowners with little down payment.

Jun 12th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

An FHA loan is a loan which is insured and backed by the Federal Housing Administration and has been put in place to help borrowers with little down payment and not such great credit to buy their homes.

Jun 12th 2013
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Andrew Do (andrew@do)
#0 ranked lender in North Carolina - 37 contributions

Thank you for the informative responses!

Jun 12th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Federal Housing Administration or HUD - to read more about it - http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory

Jun 12th 2013
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

William\'s answer is spot on.

Jun 12th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

A government loan backed by HUD.

Jun 12th 2013
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Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

An FHA loan is a loan that is backed by the Federal Housing Administration (FHA). Since it backed by the FHA, which protects lenders if a borrower were to default, lenders are able to offer loans to borrowers with poorer credit scores and smaller down payments. It is often referred to a the first-time home buyer loan, because it is a popular program for many first-time homeowners. With an FHA loan the borrower can put as little as 3.5% down. We are licensed in California and offer FHA loans, feel free to contact us directly if you would like to chat about the program in more detail!

Jun 12th 2013
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Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

An FHA loan is a loan that is backed by the Federal Housing Administration (FHA). Since it backed by the FHA, which protects lenders if a borrower were to default, lenders are able to offer loans to borrowers with poorer credit scores and smaller down payments. It is often referred to a the first-time home buyer loan, because it is a popular program for many first-time homeowners. With an FHA loan the borrower can put as little as 3.5% down. We are licensed in California and offer FHA loans, feel free to contact us directly if you would like to chat about the program in more detail!

Jun 12th 2013
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Stacey Nielsen (Unitywestlending)
#914 ranked lender in California - 123 contributions

An FHA loan is a loan that is insured by the Federal Housing Administration. Since the FHA guarantees to pay the balance in the event of a loan defaulting, rather than the lender having to write it off, FHA loans are open to people with poor credit history or to those who are unable to make large down payments. A FHA Loan can help you acquire a home with as little as 3.5%, instead of the high percentages required to obtain a typical conventional loan. This allows a great advantage for first time home buyers or anyone who wants smaller down payments to buy a home.If you are looking for FHA Mortgage Rates Lender411 can help by reaching out to reputable lenders in your area by filling out Lender411's Find a Lender.

Jun 21st 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,869 contributions

FHA loans - are mortgage loans backed up with a little bit of insurance from the government to help mitigate any loss a lender may suffer if you default on the loan. because of this, lenders are a little more willing to offer loans to more marginal clients, and allow a smaller down payment than many other loans. www.JoeMetzler.com/fhaloans.htm

Jun 13th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,869 contributions

FHA loans - are mortgage loans backed up with a little bit of insurance from the government to help mitigate any loss a lender may suffer if you default on the loan. because of this, lenders are a little more willing to offer loans to more marginal clients, and allow a smaller down payment than many other loans. www.JoeMetzler.com/fhaloans.htm

Jun 13th 2013
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