The Federal Housing Administration (FHA), a wholly owned government corporation, was established under the National Housing Act of 1934 to improve housing standards and conditions. FHA is not a loan, It’s an Insurance! If a home buyer defaults, the lender is paid from the insurance fund.FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. FHA helps low and moderate-income families purchase homes.
