What is an FHA mortgage loan?

WW2 era FHA poster

Bill consults with many clients interested in getting FHA loans in the Los Angeles area. FHA home mortages are loans provided by a private lender, and insured by the Federal Housing Administration. The FHA mortgage rates are often lower than a conventional mortgage loan, and often require a smaller down payment, easier qualification guidelines, and easier access to lenders. For this reason, FHA loans are a good option for people with barriers to accessing conventional mortgage loans. The program began as a response to the recession of the 1930's, and became a self-sustaining government program paid for by buyers through insurance premiums. The program has enabled new buyers to continue buying homes in the current recession from 2008 to 2012.