The FHA loan can make your home buying journey a great one with a mortgage backed by HUD. FHA (Federal Housing Administration) was created more than 70 years ago to help families buy the homes of their dreams.
The Federal Housing Administration (FHA) was established in 1934 to improve housing standards and conditions and to provide an adequate home financing system through insurance of mortgages. Families that would otherwise be excluded from the housing market were finally able to buy the homes of their dreams.
During the 1940s, FHA programs helped to finance military housing and then homes for returning veterans and their families.
In the '50s, '60s and '70s, FHA helped to stimulate the production of millions of units of privately owned apartments for elderly, handicapped, and lower income Americans. When soaring inflation and energy costs in the 1970s threatened the economic viability of thousands of private apartment buildings, 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. During the difficult '80s, FHA programs made it possible for potential homebuyers to get the financing they needed.
What does it take to be eligible to apply for an FHA home loan? FHA requirements include details about income, credit rating and other factors, but before a loan officer looks at any of that information, an applicant has to meet the basics.
FHA insured home loans can be used for a variety of properties and purposes. Those who apply and qualify for FHA loans can purchase a home for up to four families, a condo or even a manufactured home on a permanent foundation.
When you start researching FHA loans you’ll learn a lot about getting an FHA mortgage and the process of applying. But even with all the information you can find on the Internet, there’s plenty of confusion to clear up about FHA loans.