FHA single family home loans and mortgage refinancing

The Federal Housing Administration’s insurance program was created to help moderate to low income families obtain homes by lowering mortgage costs. The FHA also provides mortgage insurance which encourages mortgage companies to make loans to borrowers that they otherwise would not. Often the people eligible for FHA home loans do not meet the demands of traditional mortgage companies. The mortgage insurance provided by FHA protects a mortgage company against loan default for properties such as manufactured homes, single family and multifamily properties, and some health facilities. In the 1930’s the FHA helped save homeowners for defaulting and helped open suburban homes for war veterans in the 40’s and 50’s – this has helped shape the mortgage finance system of today. Currently the FHA 1 to 4 Family Mortgage Insurance is a valuable tool in which the government can enlarge home ownership possibilities for first time home buyers that would otherwise not qualify. In 1997 the FHA insured more than 700 000 homes valued in total to about 60 billion dollars. Up to this point, the FHA has insured about 7 million loans valued at a total of about 400 billion dollars. FHA protects these obligations with the Mutual Mortgage Insurance Fund which is kept alive by borrower premiums. There are a few features of a Single Family Mortgage Insurance Program provided by the FHA:


For more complete details on how FHA loans work please visit the official website at www.fha.com