Discover how the FHA expands homeownership through low down payments, flexible credit requirements, and mortgage insurance.
The Federal Housing Administration (FHA) is a United States government agency established as part of the National Housing Act 1934. Its primary purpose is to improve housing standards and conditions, provide an adequate home financing system through mortgage loan insurance, and stabilize the mortgage market. The FHA is part of the Department of Housing and Urban Development (HUD) and is vital in supporting homeownership for low- to moderate-income families and first-time homebuyers.
The FHA's initiatives have had a profound impact on the ability of many Americans to own homes, contributing to the growth of the middle class and the stabilization of the housing market, especially during challenging economic times.
FHA loans are primarily intended for owner-occupied properties. Borrowers must typically occupy the purchased property as their primary residence within 60 days of closing.
Certain property types may not qualify for FHA loans, including some investment properties, vacation homes, and properties that do not meet FHA safety and livability standards.
Prospective borrowers can find FHA-approved lenders by visiting the HUD website or consulting with a HUD-approved housing counselor. These lenders are authorized to originate FHA-insured loans and can provide guidance on the application process.
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