Mortgage Glossary
Federal Housing Administration
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The Federal Housing Administration (FHA) is a government agency that insures mortgages, enabling low-down-payment lending to a broad range of buyers.
What Federal Housing Administration means
FHA insurance protects lenders, so they can approve borrowers with lower scores and 3.5% down. The agency sets the rules and limits for FHA loans.
Florida example
A Florida buyer with a 600 score benefits from FHA insurance, which lets the lender approve a 3.5% down loan it would otherwise decline. The agency's backing makes the program possible.
Related program: Learn more →
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