In the event of a foreclosure Fha would pay any deficiencies of the mortgage to the lender..
Fha also charges mortgage protection insurance premiums which is a part of your mortgage payment.
This Mortgage protection usually goes away at 80 LTV.(loan to value)
FHA is a government agency that insures qualified lenders.
The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.
Most buyers like to see if they can qualify for an FHA loan because they can purchase a property for as little as 3.5% down.
I suggest you visit this site for in depth information on how you can qualify for an FHA loan.
I hope this helps,
Brenda Basini PA
Coral Shores Realty
Best of Luck!
An FHA (Federal Housing Administration) is a mortgage insurance back mortagage loan. Those loans are pretty much guaranteed (unless you have one of the worse credit score in the world) but you will have to pay, in addition to your monthly mortgage payment, an additional MIP (Mortgage Insurance Premium) which varies depending on the size of the loan - check with your favorite and trusted loan agent.
But visit this link to better understand an FHA loan. http://en.wikipedia.org/wiki/FHA_loan.