A United States government agency that provides mortgage insurance to qualified, FHA-approved lenders. FHA mortgage insurance helps protect lenders from losses associated with mortgage default; if a borrower defaults on a loan, the FHA will pay a specified claim amount to the lender.
Investopedia Says:
When the Federal Housing Administration was established in 1934, it was intended to stimulate the housing industry. By providing insurance to lenders, the idea was that more people would be able to qualify for mortgages, and therefore, purchase a home. FHA loans are generally given to people who otherwise would be unable to qualify for a conventional home mortgage loan.
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This insurance has an edge over private mortgage insurance. Find out why. Insuring Federal Housing Authority (FHA) Mortgages
The meltdown in mortgage-backed securities is bringing about reform in home financing. Remodeling The Housing Finance Industry
We walk through the steps needed to secure the best loan to finance the purchase of your home. Understanding Your Mortgage
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