13 Facts About FHA loan

An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.

Frequently, individuals "refinance" or replace their FHA loan to remove their monthly mortgage insurance premium.

Now FHA loan primarily serves people who cannot afford a conventional down payment or do not qualify for PMI.

Under the Eisenhower Administration, FHA loan tried to coax private developers to build more housing for minority buyers.

However, less housing was built under the program than expected, and FHA loan refused to deny insurance to developers who discriminated.

FHA loan approved lenders use a program called Desktop Underwriter known as DU for mortgage approval.

FHA loan makes provisions for home buyers who have recovered from "economic events".

Via the Back To Work - Extenuating Circumstances program, the FHA loan reduces its standard, mandatory three-year application waiting period for buyers with a history of foreclosure, short sale or deed-in-lieu; and two-year application waiting period after a Chapter 7 or Chapter 13 bankruptcy.

FHA loan allows first time homebuyers to put down as little as 3.

FHA loan allows gifts to be used for down payment from the following sources:.

In 2006 FHA loan received approval to allow hybrid ARMs, in which the interest is fixed for the first 3 or 5 years, and is then adjusted annually according to market conditions and indices.

FHA loan Hybrid provides for an initial fixed interest rate for a period of three or five years, and then adjusts annually after the initial fixed period.

The FHA loan employs a two-tiered mortgage insurance premium schedule.