Federal Housing Administration Mortgage

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Federal Housing Administration Mortgage

A mortgage provided by the Federal Housing Administration. The FHA offers several different types of mortgage, including (but not limited to) fixed-rate mortgages, adjustable-rate mortgages, energy efficient mortgages, and so forth. There are various requirements to be eligible for an FHA mortgage, including steady or increasing income for at least two years and at least two years since a bankruptcy.

Federal Housing Administration Mortgage.

Federal Housing Administration (FHA) mortgages, which are offered by private lenders, resemble conventional mortgages in many ways, but there are some significant differences.

An FHA mortgage is government insured, so lenders are protected against default. That insurance, for which borrowers pay a mortgage insurance premium, encourages qualifying lenders to make FHA loans.

The buyer's closing costs are limited and the required down payment is lower. There is a price ceiling on the amount a homebuyer can borrow with an FHA mortgage, based on the state and county where the property is located.

Furthermore, people who may not qualify for a conventional mortgage because of previous credit problems may qualify for an FHA loan.

These mortgages are assumable, which means a new buyer can take over the payments without having to secure a new loan.

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References in periodicals archive ?
The FHA mortgages Quicken Loans originated are projected to generate billions in profits (net of claims) for the government from the insurance premiums on the $40 billion in FHA volume the company has closed since 2007.
Licensed in 26 states and the District of Columbia, Total Mortgage offers a variety of products and programs including fixed-rate loans, adjustable-rate mortgage loans (ARMs), jumbo loans, FHA mortgages and more.
But FHA mortgages are taking more of a primary lending role in today's less-flexible marketplace.
Offering FHA mortgages with no down payment will unlock the door to homeownership for hundreds of thousands of American families, particularly minorities,'' HUD Acting Secretary Alphonso Jackson said in a statement.
Some FHA mortgages have sizes above the mortgage limits used for the Fha-eligible category because the FHA establishes higher mortgage limits for two-, three-, and four-family properties.
FHA mortgages, moreover, are of the life tenure type; that is, borrowers need not repay the loan until they die or move out of their mortgaged residences (perhaps to nursing homes).
This extra measure of security made FHA mortgages easily tradable.
HUD has indicated that it will continue efforts to modernize and generally renovate its loan insurance programs to increase homeownership opportunities for more Americans and to make FHA mortgages a more attractive and more important financing option.
Quicken Loans' success in originating the industry's top-quality FHA mortgages has not gone unnoticed.
Licensed in 25 states and the District of Columbia, Total Mortgage offers a variety of products and programs including fixed-rate loans, adjustable-rate mortgage loans (ARMs), jumbo loans, FHA mortgages and more.
RFS analyzed data on a total of 4 327,423 FHA mortgages that were opened between fiscal years 1998 and 2001.
Realtors(R) see first-hand how the decline in FHA mortgages has had a significant impact on America's homebuyers," said Stevens.