What are FHA-Insured Loans?
Federal Housing Administration loans, or FHA loans, are low-interest mortgage loans insured by the federal government through the US Department of Housing and Urban Development. As such, the loans feature greater security for lenders in addition to competitive interest rates, lower down payments and credit requirements that may be less than your average low-income earner or first time-home buyer. Developed during the Great Depression to boost home-ownership, the flexibility of the loan’s requirements has ushered many low-to-mid-range-income buyers to seek FHA-insured loans amidst a tougher mortgage market. While eligible borrowers must prove sufficient income and a reasonable credit score, the FHA lenders are generally considered to be more lenient than many of the conventional lenders. Additionally, through the American Recovery and Reinvestment Act of 2009, FHA-insured loans now offer loan limits up to $625,500. FHA mortgages can be fixed-rate loans, adjustable rate loans and purchas
