Have Questions? We Have Answers!
Considering an FHA mortgage loan? You have plenty of company. The Federal Housing Administration, also known as FHA, is the largest insurer of mortgages in the world.
So how does FHA work? And how does it help you buy or refinance a home?
FHA, which is part of the U.S. Department of Housing and Urban Development, also know as HUD, doesn’t actually provide home loans. It provides mortgage insurance on loans made by lenders throughout the United States and its territories. Since it was created in 1934, FHA has insured more than 47 million home mortgages. Mortgage insurance helps protect lenders against losses in the event homeowners default on their mortgage loans.
With FHA mortgage insurance, lenders are able to provide lower down payment loans with easier qualifying criteria than they otherwise would be able to offer. The insurance helps compensate for the higher risk of default on loans with lower down payment requirements and easier qualifying criteria. This allows families in Utah to purchase a home more easily and with less cash.
Once primarily a loan program for first-time homebuyers, FHA today helps all kinds of home buyers and their families afford a home of their own. Want to learn more about the FHA? The links to the right are articles aimed at helping you better understand FHA loans. And remember, it is always a good idea to get pre-approved before shopping for your new home in Utah.