What is an FHA Loan?
FHA home mortgage loans are popular due to their lower down payment requirements and less stringent lending requirements when compared to conventional loans.
- Lower Down Payments
- Ability to Qualify with Below Average Credit
- Low Interest Rates
The FHA loan program was created to combat a rash of loan defaults or foreclosures in the 1930’s. By providing mortgage lenders with insurance to help cover losses the FHA was able to stimulate the housing markets by enabling lenders to write loans with less liability.