What is FHA?
FHA stands for the Federal Housing Administration. FHA was established in 1934 as an agency within the U.S. Department of Housing and Urban Development (HUD). FHA's mission is to advocate loan programs aimed at stimulate housing growth. An FHA loan is a mortgage loan insured by the Federal Housing Administration (FHA). FHA loans originated during the Great Depression when the rates of foreclosures and defaults were sky-rocketing. The FHA guarantees the loan to the lender. Borrowers help fund FHA through paid insurance premiums. Today's FHA helps people who cannot afford a conventional downpayment or do not qualify for PMI insurance.
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