QandAs: Loans

What is a Federal Housing Administration or FHA Mortgage?

Answer:
FHA mortgages are insured by the Federal Housing Administration.

This insurance protects the lender against loss if the borrower defaults. You are more likely to be approved for an FHA loan since it is backed by the federal government.

The FHA program is especially helpful to first-time homebuyers and those with past credit or employment issues. FHA requires a down payment of only 3%, which is lower than most other types of loans. There is a cap on loan amounts that ranges from $200,160 to $362,790 depending on where you live. FHA Loans are available from FHA-approved lenders in all areas of the country.


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	What are the cons of an FHA mortgage? What are the benefits of an FHA mortgage? What is a Mortgage Lender? What are the different types of Mortgages?