What is an FHA Loan?

Posted on January 2, 2009
Filed Under FHA Home Loans, Home Loans | 10 Comments

What is an FHA Mortgage Loan?

HUD (Department of Housing and Urban Development) which was formed in 1965 operates the Federal Housing Administration which administers the Govenment Home Loan Mortgage Insurance Program.    This program insures the lender against default by a borrower whose home loan is insured by the FHA.  Hud and FHA do not make the loans – FHA only insures the loans.

FHA issues insurance for several types of loan programs.   FHA 203b is used for 1-4 units residential purchases and only requires 3.5% down payment which can be gifted from relatives, a government agency or non-profit organization.  The seller can contribute up to 6% towards closing costs.   The FHA 203b is also used for cash out refinances, rate & term refinances and streamline refinances.

FHA 203k is used for rehabilitation of 1-4 unit properties.

FHA 234c is used a condiminium loan

FHA 251 is an adjustable rate mortgage

Energy Efficient Morgage Program

Reverse Mortgages for Seniors

FHA Hybrid adjustable rate loans

FHA 2-1 Buydown

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10 Responses to “What is an FHA Loan?”

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