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Insured Loan

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Insured Loan
A loan on which payment is guaranteed by an insurance company, especially one with a high credit rating. An insured loan is protected against default because, if default does occur, the insurance company will pay the lender what is owed. Insured loans carry lower interest rates than uninsured loans because there is less risk involved.


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In addition, compared to privately insured loans mortgages, which often require a 5% or even higher down payment, FHA-backed loans require only 3.
When a lender reviews an application for an FHA insured loan they would generally be more flexible when considering household income and debt-to-income ratios.
If you have a FHA insured loan, you can get a home modification but not through the Making Home Affordable plan.
 
 
 
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