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Federal Housing Administration (FHA)

What Does Federal Housing Administration (FHA) Mean?

The Federal Housing Administration (FHA) is a federal agency that was established in 1934 to provide mortgage insurance to various qualified lenders. Issuing this insurance increases the lenders' confidence in giving mortgage loans to borrowers.

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Insuranceopedia Explains Federal Housing Administration (FHA)

Since mortgages can be very expensive, it can be difficult for many people to secure mortgage loans to buy a house. With FHA-backed insurance, mortgage lenders know they will not suffer a serious loss if the borrower defaults on their mortgage payments and, as a result, they can issue loans to a wider range of borrowers.

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InsuranceThe Insurance BusinessGovernment RegulationsMortgage Insurance

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