An FHA mortgage loan is a home loan which is underwritten to the guidelines of and insured by the Federal housing administration. FHA loans are commonly referred to as a first time home buyer loan, but they can actually be used by anyone that meets the guidelines. Qualified borrowers can purchase a single-family residence, townhome/condominium, manufactured home as a primary residence, as well as a two, three or four unit complex.
The Federal housing administration was created in 1934 as a means to assist individuals and low income families with homeownership. At the time, many banks and lenders required homebuyers to put down a substantial down payment which was prohibitive for many people considering that