F.H.A
The F.H.A AKA the “Federal Housing Administration”, provides mortgage insurance on loans made by FHA-approved lenders throughout the U.S and its territories. The FHA insures mortgages on single family homes, multifamily properties, hospitals and residential care facilities. It is one of the largest insurers of mortgages in the world, insuring more than 46 million mortgages since its inception in 1934.
FHA mortgage insurance provides lenders (banks, credit unions etc.) with protection against losses if a property owner defaults on their mortgage. The lenders bear less risk because FHA will pay a claim to the lender for the unpaid principal balance of a defaulted mortgage.
Loans must meet certain requirements established by FHA to qualify for insurance.