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WHAT IS FHA?

The Federal Housing Administration, known as “FHA”, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.
FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default.
During the 1940s, FHA programs helped finance military housing and homes for returning veterans and their families after the war.
In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans.
Today, FHA, by insuring local banks and other lenders risk of loss, allows homebuyers to minimize their ‘down payment’ to 3% of the purchase price making homeownership accessible to a larger percentage of the population.
FHA is the only government agency that operates entirely from its self-generated income at no cost to the taxpayers. The

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