Business, Legal & Accounting Glossary
FHA. A government agency whose primary purpose is to insure residential mortgage loans, as well as to improve housing conditions. The FHA was created by the National Housing Act of 1934, after the Great Depression caused many homes to be foreclosed. The FHA currently operates as part of the Department of Housing and Urban Development, and is fully self-funded. Following the financial crisis of the 2000s, the number of FHA mortgages skyrocketed, jumping from 2% to over 33% of all mortgages. FHA mortgages are more flexible than other loans, which benefits borrowers, and are appealing to lenders as well because there is less risk due to the insurance provided by the FHA.
The Federal Housing Administration, or FHA, is an agency of the US Department of Housing and Urban Development (HUD) that provides mortgage insurance, mostly for single-family homes.
Congress created the Federal Housing Administration in 1934 as a way to increase homeownership by making mortgages more accessible to low-income families. Today the Federal Housing Administration serves not only low-income but also middle-income borrowers. The Federal Housing Administration provides this mortgage insurance through its Mutual Mortgage Insurance Fund, which is entirely funded by borrower insurance premiums. A mortgage insured by the Federal Housing Administration is called an FHA loan. The Federal Housing Administration has insured tens of millions of loans in the decades since it was created and insures several million today. The Federal Housing Administration competes with several private mortgage insurers, but it is larger than all of these.
FHA
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Federal Housing Administration are sourced/syndicated and enhanced from:
This glossary post was last updated: 21st November, 2021 | 0 Views.