FHA-Insured Loans

FHA was established in 1934 under the National Housing Act and was consolidated into HUD in 1965.

The FHA s purpose is to improve housing standards and conditions, provide an adequate home financing through mortgage insurance, help stabilize the mortgage market and provide homeownership opportunities. HUD acts as an administrator and insurer of FHA s originated loans. FHA does not insure individuals, it insures the loans that lenders offer to borrowers. Lenders must offer long-term, self-amortizing, market rate, assumable loans in order to participate in the program.

By insuring lenders loans, lower down payment costs and mortgage insurance premiums are offered to homebuyers. Other advantages of FHA insured loans are: less stringent borrower qualifying criteria; financing up to 100% of up-front loan closing costs and insurance premiums; higher loan-to-value ratios on loan refinances; and higher allowances for seller-paid closing costs. In addition, the presence of FHA insured loans in the mortgage market have other benefits. They help lenders preservation of their fiduciary profile, stabilize the market, and provide a reliable secondary mortgage market participant.

FHA Single Family Insurance Programs

Loan Programs:

  • Energy Efficient Mortgages Program
  • Graduated Payment Mortgage Insurance (Section 245(a))
  • Growing Equity Mortgage Insurance (Section 245(a))
  • Home Equity Conversion Mortgage Program
  • Indian reservations and Other Restricted Lands
  • Insurance for Adjustable Rate Mortgages (Section 251)
  • Manufactured Home Loan Insurance (Title I)
  • Manufactured Home Lot and Combination Loan Insurance
  • Mortgage Insurance for Condominium Units (Section 234(c))
  • Mortgage Insurance for Low/Mod Income Buyers (Section 221(d)(2)
  • Mortgage Insurance for Members of the Armed Forces (Section 222)
  • Mortgage Insurance for Older, Declining Areas (Section 223(e))
  • Mortgage Insurance for One- to Four-Family Homes (Section 203(b))
  • Property Improvement Loan Insurance (Title I)
  • Rehabilitation Mortgage Insurance (Section 203(k))
  • Single-Family Cooperative Mortgage Insurance (Section 203(n))
  • Single-Family Mortgage Insurance for Disaster Victims (Section 203 (h))
  • Single-Family Mortgage Insurance for Outlying Areas (Section 203 (i))

Regulatory Programs

  • Insurance premiums
  • Interstate Landsales
  • Manufactured Home Construction and Safety Standards
  • Minimum Property Standards
  • Premium refunds
  • Reduction in mortgage insurance
  • Regulatory Programs Real Estate Settlement Procedures Act
  • Servicing and Loss Mitigation


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