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FHA Loans

What Is An FHA Mortgage Loan?

Many people don’t understand U.S. Government Backed Loans.  They almost always ask “What is  a FHA mortgage loan?”.  With all the government programs like Fannie-Mae, Ginnie-Mae, Freddie-Mac, etc., that’s not a surprise. First, as I mentioned in the previous article, the Federal Housing Authority (FHA) does not actually issue loans. What they really do is to insure the loans that mortgage lenders issue to remove the risk associated with the loan through US-Government guarantees. Basically, it’s an insurance policy to make sure the lender doesn’t lose money on your loan because of your failure to make your mortgage payments. In this way, they make it a lot easier for ordinary people like you and me to get an FHA home […]


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