Federal Housing Administration - FHA

AAA

DEFINITION of 'Federal Housing Administration - FHA'

A United States government agency that provides mortgage insurance to qualified, FHA-approved lenders. FHA mortgage insurance helps protect lenders from losses associated with mortgage default; if a borrower defaults on a loan, the FHA will pay a specified claim amount to the lender.

INVESTOPEDIA EXPLAINS 'Federal Housing Administration - FHA'

When the Federal Housing Administration was established in 1934, it was intended to stimulate the housing industry. By providing insurance to lenders, the idea was that more people would be able to qualify for mortgages, and therefore, purchase a home. FHA loans are generally given to people who otherwise would be unable to qualify for a conventional home mortgage loan.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Uninsurable Property

    A home that is not eligible for insurance through the United ...
  3. Adjustable-Rate Mortgage - ARM

    A type of mortgage in which the interest rate paid on the outstanding ...
  4. Mortgage Broker

    An intermediary who brings mortgage borrowers and mortgage lenders ...
  5. Mortgage Banker

    A company, individual or institution that originates mortgages. ...
  6. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
Related Articles
  1. Understanding FHA Home Loans
    Retirement

    Understanding FHA Home Loans

  2. Understanding Your Mortgage
    Personal Finance

    Understanding Your Mortgage

  3. The FHA's Minimum Property Standards
    Home & Auto

    The FHA's Minimum Property Standards

  4. Insuring Federal Housing Authority Mortgages
    Home & Auto

    Insuring Federal Housing Authority Mortgages

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center