If you’re curious about FHA loans, today’s video is for you.
What is an FHA loan?
FHA stands for Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA was created in 1934 to promote homeownership for hard-working Americans with moderate income and less-than-perfect credit who’d only need a minimum down payment to become homeowners.
The FHA isn’t a lender—they’re a government-sponsored entity that insures home loans to private lenders in the event of a foreclosure. For lenders to originate an FHA loan, they need to be HUD-approved. If a lender doesn’t adhere to FHA lending guidelines, their loan can’t be insured by the FHA. Thus, the FHA requires all lenders who originate FHA loans to have all the necessary parties sign certain documents. One of those documents is the FHA Amendatory Clause, which I’ll elaborate on in my next video.
If you have questions about FHA loans, any other type of loan, or where you can find a good local lender in Northern Nevada, give me a call or send me an email.