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

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center