An FHA Loan - What Should That Mean To You? 

FHA is an acronym  for the Federal Housing Administration under the auspices of the Department of Housing and Urban Development (HUD). The Federal Housing Administration was created as part of the National Housing Act of 1934. The role of the Federal Housing Administration is to provide stability to the mortgage market by increasing housing standards and insuring mortgage loans.

An FHA loan is more about the mortgage insurance than the actual funding of the mortgage. The difference between a regular conventional loan and a FHA loan is that conventional loans are insured by a private mortgage insurance company and an FHA loan is insured by FHA.  For FHA to insure a mortgage, the lender funding the loan must be FHA approved.  FHA insurance protects lenders against homeowners defaulting on their mortgage loans.

FHA Loans benefit both the lender and the borrower. Low down payment options are available, underwriting standards are more flexible when compared to conventional programs and no minimum credit score is required.

FHA Insured loans are just one of the many programs available to A-1 Mortgage customers. Still have questions about FHA programs? Think you may qualify for an FHA purchase or refinance of your home?

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