The Federal Housing Administration is a program under US Housing and Urban Development. It is a government idea to provide the much needed improved housing conditions to American home owners. This program avails insurance for mortgage loans taken. In the few years past, there was great turmoil in the US housing market. There was all reason to panic. The economy enjoys more stability as a result. Over its genesis, the subprime mortgage quagmire found the FHA, Fannie Mae and also the Freddie Mac as the mortgage financier.
The agency therefore offers different kinds of loan agreements to whoever qualifies. These include adjustable and fixed mortgage rates. Graduated payment, growing equity and energy efficient loans are some others.
To qualify, you must have met the set criteria of the FHA. You will have to explain something about your financial status. These loans are best for those who have been under 2 or more years of a steady income. You will need good credit ratings too. The FHA keeps coming up with newer programs to ensure there is the required stability. That way, they both play an active role in keeping the economy stable if not growing. That is because struggling parties get all the help they need to keep up with the pace in honoring various financial agreements.
As per the Department of Treasury, there has been a $300B budget awarded to make home owners shield against foreclosures. Read More