Working Together to Help People Fulfill the American Dream
REALTORS® and the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), have been partners in creating homeownership opportunities for more than 70 years. Since FHA was created in 1934, it has helped more than 34 million families become homeowners, many by working with their REALTOR® to achieve their dream of homeownership.
Backed by the full faith and credit of the Federal government, FHA-insured mortgages are one of the safest and most afford- able types of mortgages available to homebuyers. Working together, REALTORS® and FHA help millions of families come home.
What is FHA Mortgage Insurance?
The Federal Housing Administration (FHA) insures mortgages offered by banks, savings associations, and other financial institutions. An FHA-insured mortgage is backed by the full faith and credit of the United States government.
While FHA does not make loans, it benefits the homebuyer by providing mortgage insurance which encourages financial institutions to make affordable financing available.
What are the Benefits of an FHA Mortgage?
FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and help if there is ever trouble making the mortgage payment.
Because an FHA mortgage insures the lender against loss, an FHA mortgage typically has an interest rate that is competitive with the best in your market and lower than the rates charged for subprime and other non-prime mortgages.
FHA not only helps people buy a home, but helps them keep it as well. In return for protecting lenders against loss, FHA requires financial institutions to offer assistance to borrowers experiencing difficulty making mortgage payments.
What About Eligibility?
In order to be eligible for an FHA-insured mortgage, a borrower must:
To learn more about these products or to find out if there are homeownership programs sponsored by your state or local governments and other community organizations, please visit FHA’s website at www.fha.gov or call 1.800.CALL FHA.
There are several other features worth knowing about an FHA-insured mortgage:
HOW ELSE CAN FHA ASSIST INACHIEVING HOMEOWNERSHIP?
In addition to its standard Section 203(b) Mortgage Insurance Program, FHA has a number of other valuable programs designed to facilitate homeownership.
FHA Adjustable Rate Mortgage (ARM) Products
FHA’s Limited Repair Program
IN ADDITION TO FHA, THE U.S.DEPARTMENT OF HOUSING ANDURBAN DEVELOPMENT (HUD) OFFERS THESE RESOURCES:
The Department has single-family homes in hundreds of communities available for sale to the public. How do you benefit from purchasing a HUD Home?
For more information on available HUD homes, please visit:
For more information on selling HUD homes, please visit: www.hud.gov/groups/brokers.cfm
HUD-Approved Housing Counseling Agencies
Home buyers often have a lot of questions about getting an FHA-insured mortgage and about the home buying process in general. HUD-approved Housing Counseling Agencies providebuyers the opportunity to get the answers they need by meeting with a housing counselor at a HUD-approved agency in their community. These agencies offer home ownership counseling and financial literacy training at little or no cost. To find a counselor in your neighborhood, call 1.800.569.4287 or visit http://www.hud.gov/buying/index.cfmand click on “find a housing counselor”on the right under “counseling and education.”
To learn more about these products or to find out if there are home ownership programs sponsored by your state or local governments and other community organizations, please visitFHA’s website at www.fha.gov or call 1.800.CALL FHA.