What does fha loan stand for
FHA stands for Federal Housing Administration. FHA does not actually lend the money. They simply insure 100% of a loan amount that a lender funds, assuming that the loan conforms to FHA guidelines.
FHA is part of HUD or Housing and Urban Development. The federal department responsible for the major housing programs in the United States. HUD sets the guidelines for qualifying and states what loans they will insure.FHA programs and guidelines tend to be the most flexible. since it is a government insured loan whose primary concern is to provide housing the all citizens of the U.S.
FHA offers 3% down payment home loans
FHA offers loan programs to purchase
FHA allows all of your down payment to be a gift from a family member, relative, or non-profit organization
FHA allows up to 6% of your closing costs to be paid by a homeseller to minimize the money you need to complete you home purchase
FHA does not require credit scores which are mandatory for Fannie Mae conventional loans
FHA offers the most flexible down payment, credit, and income qualifying guidelines of all home loans
FHA offers all types of loan programs, such as a fixed rate, adjustable rate, or a buy down mortgage
FHA will lend on most property types, such as a single family home, a duplex, a triplex, or a fourplexSource: www.fha-home-loans.com