FHA loans, or Federal Housing Administration loans, are government-insured mortgages that provide a path to homeownership for prospective buyers who meet the criteria to qualify for this type of home loan.
If you’re looking to apply for a mortgage but don’t have the credit or savings for a typical financing plan, FHA loans might be right for you.
Since these loans are government insured, lenders can be certain their investment is safe and insured, allowing them to be more flexible towards certain credit or property characteristics when approving a loan. If the buyer can’t keep up payments and the home loan falls into default, the lender can foreclose the property and sell it back on the market to recoup any losses. By insuring a portion of the lender’s financing, banks can be more flexible with their mortgage approval terms, creating new paths to homeownership for borrowers who apply for an FHA loan.
If you are interested in this item and have some questions, feel free send an inquiry.
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