What Does FHA Mortgage Insurance Cover?
With mortgage guidelines tightening up, the requirement of higher credit scores and higher down payments, it is a tough time to try to buy a home. Just when you thought it was impossible, the Federal Housing Administration (FHA) is making buying a home better and easier. FHA is able to do this because it insures your loan to the funding lender in the event of your default, and is doing this with the smallest down payment requirements in the mortgage industry. The mortgage insurance premium makes your loan much more attractive to the bank who may consider funding it on your behalf, and more attractive to the secondary market who might buy and service your loan after it closes.
