Speaking of which, how is the FHA funded?

Asked by Albert, Chicago, IL Thu Mar 7, 2013

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6
Laurie Chris…, Agent, Oak Park, IL
Thu Mar 7, 2013
BEST ANSWER
The FHA is not funding these loans; they are insuring them.
1 vote
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Thu Mar 7, 2013
FHA insures the loan - The lender will fund the loan
1 vote
Gregorio Den…, , San Diego, CA
Fri Mar 8, 2013
??????
I feel alone on an Island here... did I miss the intent of this question?
Did you want to know how the FHA is funded (exactly as you asked) or did you want the answer the agents gave you about how an FHA mortgage is funded?
0 votes
Gregorio Den…, , San Diego, CA
Fri Mar 8, 2013
Wow!

FHA is an entirely self generated program. FHA does not utilize tax-payer funds to operate and is funded entirely from mortgage insurance premiums it collects. This is the reason FHA premiums are going up and in some cases, may never fall off. Some estimates have FHA short 13 billion dollars and they need to raise premiums to recoup that.
Web Reference:  http://WeFixRates.Com
0 votes
Manuel Brown, Agent, Chicago, IL
Fri Mar 8, 2013
Albert,

Sam and Laurie are correct!
0 votes
Matt Laricy, Agent, Chicago, IL
Thu Mar 7, 2013
Two correct answers directly below.
0 votes
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