FHA Money Trouble Causes Concern For Homebuyers

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FHA News Editor - Here we post articles each week on FHA/VA Government news.

The Federal Housing Administration (FHA) is the oldest government backed lender in the U.S. It began as part of the New Deal in 1934. Its earliest mission was to provide loans to those denied by traditional financial institutions, but were still deemed "credit worthy." The goal of the FHA was to create better neighborhoods, living conditions and boost the economy by helping more Americans become homeowners. During the housing bust that began in 2008 and 2009, the FHA picked up many pieces of the aftermath by offering loans to those who were facing foreclosure with their private lenders an option to refinance. With a White House plan called Making Home Affordable (MHA), the FHA offered substantially low interest rates, with minimum down-payments and even allowed first-time homebuyers to use the $8,000 tax rebate as their down-payment.

To read the entire article, please visit:
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/19/investopedia...

SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)