The FHA Loan Difference Explained by Ready Set Loan

The Federal Housing Administration, or FHA, is an insurance fund controlled by the government (HUD, specifically) to protect lenders against borrower defaults.  FHA has written what is required of the borrower in order to qualify for a loan backed by FHA insurance.  Qualifications include a minimum down payment, minimum income qualifications and minimum credit requirements. Fannie Mae and Freddie Mac do not have their own insurance funds; private mortgage insurance (PMI) companies such as MGIC or GMAC provide similar protection …

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