FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are sold to GNMA (Government National Mortgage Association) for securitizing and sale to the investment community. This securitization process allows for that federally quaified lender to continue making new loans.
FHA loans are an attractive, maximum financing option, especially for first-time homeowners:
Generally easier to qualify for than conventional loans.
Lower down payment requirements.
Cannot exceed statutory loan limits.
Learn more about FHA loans. (Department of Housing and Urban Development)
