Fha Mortgage Insurance Refunds

Fha Mortgage Insurance Refunds

Fha Mortgage Insurance Refunds

The Federal Housing Administration (FHA) falls under the authority of the U.S. Department of Housing and Urban Development or HUD. The FHA is not a mortgage lender. Their function is more of a type of insurance policy for the lenders. If the homeowner defaults on a loan, the FHA will pay a portion of the loss to the lender.

FHA Home Mortgage Loan

Since the FHA insures home loans, the homer buyer can benefit from a lower down payment. Conventional home loans often require a larger down payment to reduce the risk to the mortgage lender. The FHA has specific guidelines and qualifications for a home loan. These guidelines and qualifications are designed to protect the homeowner as well as the mortgage lender.