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What is the FHA and what do they do?

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9th Dec 2009 by Gary

The Federal Housing Administration or FHA insures mortgages for lenders who are approved by the organization. Insurance includes residential single and multifamily homes, along with hospitals and manufactured homes. What the FHA insurance offers is protection against losses in case a homeowner defaults on the mortgage. While it doesn't eliminate all risk, it does reduce the risk to the lender, allowing them to offer homes to buyers not as strong as in the prime mortgage market.

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1st Dec 2009 In USA 1 Answers | 713 Views
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