The FHA Commitment to Fair Housing
February 11, 2025
This insurance reduces the risk associated with lending to borrowers who may otherwise be considered higher risk, encouraging lenders to offer more favorable terms, such as lower down payments and more flexible credit requirements.
A key element of the FHA program is its commitment to fair housing, deeply rooted in the Fair Housing Act.
The act, passed into law in 1968, prohibits housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
As a government agency, the FHA must uphold and enforce the Fair Housing Act in all its programs and operations.
The FHA's role in promoting fair housing is more than helping consumers avoid discriminatory practices. The FHA's mission includes removing barriers to housing opportunity and creating inclusive communities.
This involves educating lenders, real estate professionals, and consumers about their rights and responsibilities under the Fair Housing Act. The FHA also provides resources and support to individuals who believe they have experienced housing discrimination.
The Fair Housing Act and its Impact on FHA Lending
The Fair Housing Act is the cornerstone of fair housing law in the United States. It prohibits discrimination in selling, renting, or financing housing based on protected characteristics. The FHA plays a vital role in enforcing the Fair Housing Act and ensuring everyone has equal housing opportunities.
The following are the protected characteristics under the Fair Housing Act:
- Race
This includes discrimination based on ancestry or ethnic characteristics associated with a particular race. - Color
This refers to discrimination based on a person's skin color. - Religion
This protects individuals from discrimination based on their religious beliefs or practices. - National Origin
This prohibits discrimination based on a person's birthplace, ancestry, or cultural background. - Gender
This includes discrimination based on gender, sexual orientation, and gender identity. - Familial Status
This protects families with children under 18 from discrimination. It also includes pregnant women and individuals seeking custody of a child. - Disability
This prohibits discrimination against individuals with physical or mental disabilities and requires housing providers to make reasonable accommodations for them.
Lenders cannot refuse to make a loan, offer different loan terms, or deny housing opportunities based on a borrower's race, color, religion, national origin, sex, familial status, or disability. KNOW YOUR RIGHTS.
FHA Loan Articles
June 30, 2026FHA loans offer low down payment options and more forgiving credit requirements for borrowers who may not qualify for a conventional mortgage or need to save more money out of pocket at the front end of the mortgage. But even with more forgiving credit requirements, some borrowers are tempted to omit certain debt information from their home loan applications. What does it mean to conceal a debt or financial situation from your loan officer?
June 30, 2026Some borrowers start working on their credit scores but get impatient with the process because they can't predict when their efforts will change their FICO scores. How long does it take for your FICO scores to update when you pay off a loan, reduce your credit card balances, or take other steps to make yourself a better credit risk? The short answer is that credit reporting procedures are not standardized, and it may take more time than you realize to get those positive credit actions added to your credit report.
June 29, 2026Mortgage interest rates are "moving targets" shaped by national economic trends and the borrower's specific financial profile. What is your FHA loan interest rate? Much depends on the financial data you bring to the table. Lenders set interest rates daily based on a snapshot of market conditions, but the rate ultimately offered also reflects risk, equity, and the lending institution's internal operational costs.
June 28, 2026An FHA appraisal differs from a conventional appraisal. While the goal of a conventional appraisal centers on market value, the FHA appraisal also focuses on the buyer's safety and soundness. FHA lenders select the appraiser, not the home buyer.
June 24, 2026FHA loan closing costs vary by property price and geographic location, rather than by a single nationwide flat fee. Total settlement charges combine percentage-based fees, local government taxes, and marketplace service costs. If you are new to buying a home, you'll want to get familiar with the closing cost issues discussed here to avoid budgetary surprises later on.
