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In the wake of the housing bubble's collapse, FHA loans have taken on renewed importance for today's mortgage borrowers.
Simply stated, an FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.
Because of that insurance, lenders can-and do-offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements.
Here are seven facts all buyers should know about FHA loans.
Less-than-perfect credit is ok: The FHA doesn't mandate a minimum credit score, according to Vicki Bott, HUD deputy assistant secretary for s...
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