An FHA loan is a mortgage insured by the Federal Housing Administration. The Federal Housing Administration is a government agency within the U.S Department of Housing and Urban Development. Borrowers who receive FHA loans pay for mortgage insurance. This insurance protects the lender in case the borrower were to default on their loan.
Because of this mortgage insurance, lenders can and most often do offer FHA loans with attractive interest rates and more flexible requirements for qualification.
Here are few facts all buyers should know about FHA loans:
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