FHA Rules
The Federal Housing Administration, or FHA, backs personal mortgages so that more people can have the opportunity to own their home. FHA backing makes the mortgages less risky for lenders so they are more willing to issue the mortgages.
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Features
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An FHA-backed loan can have a down payment as low as 3.5 percent, which is much lower than most conventional loans.
Considerations
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To get an FHA-backed loan you must have steady employment and no foreclosures in the past three years of foreclosures in the last three years.
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Size
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The maximum amount that can be borrowed with an FHA-backed loan ranges from $271,050 to $729,750, depending on the housing prices in your area.
Types
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FHA mortgages can be either a fixed-rate mortgage or an adjustable-rate mortgage, but fixed-rate mortgages are more common.
History
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The FHA started in 1934 and has backed more than 34 million loans as of 2009.
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