Is FHA a subsidy program? If not what is it?

Asked by Hannah Desmond, Fort Lauderdale, FL Wed May 1, 2013

Help the community by answering this question:

+ web reference
Web reference:


Scott Godzyk, Agent, Manchester, NH
Sun May 5, 2013
NO, FHA is a type of mortgage. You should start by seeing a local and trusted loan officer who can pre-qualify you and inform you of what programs you may qualify for. FHA is a government organization that guarantees the loan,. it has a lower down payment and often lower rates than conventional loans. it has a higher standard of qualification.
0 votes
Brenda Basini…, , Fort Lauderdale, FL
Thu May 2, 2013
Hello Hannah,
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
0 votes
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Wed May 1, 2013
FHA has been helping homebuyers finance their home for decades. FHA financing is where a government approved lender finances your home loan following certain guidelines. Based on those guidelines, the lender sends your loan to HUD for loan insuring. The MIP (mortgage insurance premium) that is added to you loan as well as the MMI (monthly mortgage insurance) helps finance that agency. In the event the lender has to foreclose on the borrowers, the lender turns in a claim and the Federal Government (you and I as taxpayers) pays the lender damages for their loss. FHA has the lowest rates among all government insured loans due to the strength of who back those loan. Uncle Sam! Hope this helps. Let us know if you have any lending needs as we are licensed in 18 States including FL.

Best of Luck!
Web Reference:
0 votes
Gary Hitchco…, Agent, Coral Springs, FL
Wed May 1, 2013
No, FHA is a federally insured loan. It has lower down payment requirements, lower credit score requirements, and higher debt ratio guidelines,
0 votes
John Bourassa, , Fort Lauderdale, FL
Wed May 1, 2013

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.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more