FHA Mortgages

American’s are arguably the best-housed people in the world. Congress created FHA loans that have been helping people become homeowners since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, allowing lenders to offer:

  • Lower down payments
  • Lower closing costs
  • Easier credit qualifying guidelines

FHA is beneficial to those who have a credit FICO score of 500 – 620

Borrower’s who have a 3% down payment

Borrower’s who are moderate to lower-income earners

If you are ready to qualify for an FHA loan.

Apply want to know about FHA History learn here

FHA History

Congress created the Federal Housing Administration (FHA) in 1934 to help the country get back on the road to economic recovery. At the time, the housing industry was flat on its back. Two million construction workers had lost their jobs. For homebuyers seeking mortgages, the terms were terrible. Loans were limited to 50 percent of value, spread over three to five-year terms, ending in a balloon payment. In those days, America was primarily a nation of renters. Only 4 in 10 households owned homes.

In the 60 years since FHA came on the scene, a lot has changed.

Thanks to the mortgage insurance products, FHA helped to pioneer, our homeownership rate now exceeds 65 percent. Americans are arguable the best housed-people in the world. FHA contributed substantially to that achievement.

During the 1940s, FHA programs helped finance military housing and homes for returning veterans and their families. In the 50s, 60s, and 70s, FHA stimulated the production of millions of units of privately-owned apartments for elderly, disabled, and lower-income Americans. When soaring inflation and energy costs in the 1970s threatened thousands of private apartment buildings’ economic viability, FHA’s emergency financing kept cash-strapped properties afloat. When a deep recession prompted private mortgage insurers to pull out of oil-producing states in the 1980s, FHA moved in to stabilize falling home prices and ensure purchasers could find financing for homes they wanted to buy. Today, FHA is essential to first-time and minority homebuyers. FHA is also active in urban neighborhoods. In 1994, 65 percent of our new business was insuring mortgages for people buying their first home. Nationwide, about half of the families securing FHA-insured financing had annual incomes below $37,000. By 2001, the nation’s homeownership rate had soared to an all-time high of 68.1 percent as of the third quarter that year.

Today, FHA has active insurance on over 8 million single-family mortgages, almost 12,000 mortgages for multifamily properties, over 3,700 residential care facilities mortgages, and nearly 100 mortgages for hospital facilities. The combined unpaid principal balance in FHA’s insurance portfolio is around $1.3 trillion.

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