MyCreditsBad

FHA loans are loans made by Banks and other Lenders that are INSURED by HUD.  HUD does not make loans nor does any agency name FHA.  They simply insure the lender/services/investor that they will not take certain losses on the loan if it goes bad.

While HUD insures these loans, they have to meet certain guidelines.  If the lender can not get insurance on the loan loan if it is rejected by HUD then the lender may own this loan and all of it risk.  Most lender do not want this risk.

FHA offer a great program as it only requires 3.5% cash downpayment from the borrower, has excellent rates and offers some flexible underwriting guidelines allowing more people to become homeowners.

Borrowers with a current FHA Mortgage Loan can take advantage of the FHA Streamline Refinance to lower their interest rate and payments.