One of the most stressful parts of buying a new home is figuring out how you’re going to be able to afford it. The good news is that average mortgage loan rates have been steadily falling over the last year, but the bad news is that there are a lot of different types of mortgage loans to choose from. One type of mortgage is an FHA loan. Here is what you need to know.
FHA stands for Federal Housing Administration, which is an entity of the federal government which was created in the 1930’s to help create standards for construction and underwriting. The agency also backs home loans, which are referred to as FHA loans. The FHA basically offers the lender a guaranty in the eve