FHA (Federal Housing Administration) is not a lender, they are a government entity that insures first liens on home mortgages and they administer the issuance, compliance, and servicing of the insurance.
Why has the use of FHA loans tripled in the last 12 months and continue to grow? Here are a few reasons:
• low down payment options - as little as 3.5%
• eligible for financing despite challenged credit
• borrower's entire cash investment can be gifted by family members, employers, or other approved sources like county or state bond programs
• no reserves needed
• lower monthly mortgage insurance
• no maximum cap on income
• borrower can get up to 6% seller concessions
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