What is FHA?
FHA assists
first-time buyers and others who might not be able to meet down payment requirements for
conventional loans by providing mortgage insurance to private lenders. It also insures
loans for home improvements and buying manufactured (mobile) homes.
This is done through the Federal Housing
Administration (FHA), a branch of HUD which works through local mortgage lending
institutions to provide Federal mortgage and loan insurance for homeownership and the
construction or improvement of affordable housing.
There are approximately 10 mortgage
insurance and loan programs administered by the Assistant Secretary for Housing-Federal
Housing Commissioner.
As of October 1, 1996, FHA has insurance in
force on 6.5 million single-family dwellings, totaling $401 billion.
Most of these loans are insured by the
Mutual Mortgage Insurance Fund. MMI is designed to be a self-sustaining fund requiring no
annual appropriations.
Interest rates on FHA loans are generally
market rates, while down payment requirements are lower than for conventional loans. FHA
loans cannot exceed the statutory limit.
When buyers become seriously delinquent on
their loans, their mortgage companies usually foreclose and file insurance claims with HUD
for the amount still owed on the loan. HUD pays the claim and becomes the owner of the
property. The HUD Property Disposition staff across the nation and its contractors
maintain and market these properties.
FHA also assists in providing affordable
rental housing by insuring loans to developers and builders who construct or rehabilitate
apartments and other multifamily housing developments.
FHA had insurance in force estimated at $48.6
billion on 15,935 multifamily developments with 2 million units as of September 30, 1996.
[ How Long Does It Take to Buy a Government Owned Home? ]
[ How Much Are Government Owned Homes? ]
[ What is FHA? ]
[ Why Should I Buy a Government Owned Home? ]
[ How do I buy HUD Homes? ]
[ What is HUD? ]
[ What Is a HUD Home? ]
[ What Is HUD's Mission? ]
[ What Does HUD do? ]
[ What are the General Sales Conditions for HUD Homes? ]
[ How Does Government Housing Work? ]
[ How Are HUD Homes Sold? ]
[ How Do I Find Available Government Property? ]
[ Problems For Inexperienced Buyers ]
[ Do I Qualify to Buy a HUD Home? ]
[ Can I rent out my HUD home? ]
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