Amy Sherman, Home Buyer in Brooklyn, NY

WHAT IS THE FHA? I seriously feel like I need a glossary on all these terms!

Asked by Amy Sherman, Brooklyn, NY Thu Mar 7, 2013

Help the community by answering this question:


FHA stands for Federal Housing Authority. In simple terms, FHA is a type of mortgage. This is a loan that is insured by HUD (a government agency). HUD pretty much insures FHA loans that meet the set standards and parameters. So FHA is flexible when it comes to qualifying homebuyers, so lenders are willing to lend to people with less than perfect credit, high debt to income ratios, lack of reserves, etc, mainly because of the insurance that HUD gives the lending institutions.

I strongly suggest you meet face-to-face with a Loan Officer and go over all these things you're asking about. Many times you'll learn a lot from meeting with a Loan Officer. You'll become educated on what all these terms are. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648
2 votes Thank Flag Link Thu Mar 7, 2013
So so so so so helpful, thank you.
2 votes Thank Flag Link Fri Mar 8, 2013
Glad to hear it Amy!
Flag Mon Mar 11, 2013
Amy, all the answers were excellent. So here are a few facts about FHA from that may be of interest.

FHA was created by Congress in 1934, during the midst of the Great Depression
FHA is one of the few, if not the only100% self-funded government program
FHA is funded by the insurance premiums it collects from homeowners with an FHA-insured mortgage
Prior to FHA, mortgages in America generally required a 50% down payment.

If you're considering purchasing a home, an FHA-insured mortgage may be a great option. However, changes scheduled for April and June will make FHA mortgages more expensive for most buyers. But there are other options. Get preapproved with an experienced mortgage professional. I have extensive experience helping first time buyers become successful homeowners throughout NYC and nearby suburbs. I can be reached directly at 917.699.0183 for more info or assistance.

I value your feedback so please hit the thumbs up, if my reply was helpful. All the best!

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
2 votes Thank Flag Link Fri Mar 8, 2013
Super helpful!
Flag Fri Mar 8, 2013
Hi Amy,
You have some great responses here so I just wish to provide you a link to the FHA's website where you can learn more about it:…

And, here is a link to HUD's website which contains a glossary of real estate terms which you may find helpful:…

Best wishes!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Fri Mar 8, 2013
FHA is an Federal Housing Administration Agency, A Division of Department of Housing and Urban Development. Insures residential mortgage loans made by Lenders. It acts sort of a Secondary Market for Lenders.
1 vote Thank Flag Link Thu Mar 7, 2013

0 votes Thank Flag Link Fri Mar 8, 2013
FHA is the Federal Housing Authority, and they insure or guarantee the loans made by private banks. Essentially, the government is insuring the lender against the risk of a mortgage going into default.
0 votes Thank Flag Link Thu Mar 7, 2013
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