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FHA LOAN

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A FHA loan is a Government Program created by The National Housing Act of 1934. It was established primarily to increase home construction, reduce unemployment and operate various loan insurance programs.

FHA LOAN

What is a FHA LOAN

A FHA loan is a Government Program created by The National Housing Act of 1934. It was established primarily to increase home construction, reduce unemployment and operate various loan insurance programs. In the latter halve of the 1960s, their role has expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. Further changes in 1980 raised ceilings on single-family loan limits, it permitted negotiated interest rates on certain FHA programs & created a new FHA subsidy program for middle income families. In August 2007 FHA added a new refinancing program called FHA-Secure to help borrower hurt by the 2007 subprime mortgage financial crisis. On March 6 2008, the FHA-Forward program was initiated. This was part of the stimulus package put in place to raise the loan limits for all FHA programs and in some instances it’s loan limits are higher than conventional programs put in place by Wall Street.