Need an appraisal for an FHA-backed mortgage? Call Duncan Appraisals

The FHA is the Federal Housing Administration, which is a federal organization in the United States Department of Housing and Urban Development (HUD) - if your financial transaction is an FHA-secured loan, it means it is insured by them. No part of the loan is provided by the FHA; what the FHA does is ensure that the loan is secure in case the borrower doesn't pay their loan. Low-income and moderate-income consumers benefit from an FHA-backed loan; the purpose of the Federal Housing Administration is to help credit-worthy potential buyers to meet expectations and qualifications for lending agencies that they otherwise would not.

Typically, a buyer has to pay less of a down payment on an FHA-insured loan, while the rates remain standard market rates. Purchasers with lesser income or less starting capital to use as a down-payment on a loan are helped the most from FHA loan programs.