Real Estate Term: FHA Loan
By Linda Ferrara
(Coldwell Banker Enchantment Realty)
Definition: A loan made by an approved lender in accordance with the FHA's regulations and insured by the Federal Housing Administration. From "About.com": The Federal Housing Administration (FHA) runs several programs to promote home ownership. In most cases, FHA loans are mortgages obtained with the help of the FHA. With a small down payment, buyers can purchase a home. FHA loans make it easier for people to qualify for a mortgage, but they're not for everybody. What is an FHA Loan? An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender won't have to write off a loan if the borrower defaults - the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans. Who Can Get an FHA Loan? Almost anybody can ...