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Published on Friday, 23 September 2011 12:45

FHA Guidelines for Condos

One branch of the Housing and Urban Development (HUD) Department is the Federal Housing Administration, abbreviated FHA.  The FHA is the government body which is tasked with administration and dispensation of home loan insurance.

The main purpose of the FHA loan insurance is to help first time buyers obtain loans by covering the risk to the lender up to a certain point.

Lenders don’t usually trust first time home buyers since they know nothing about them, but are more likely to consider giving them a mortgage if they have the assurance of coverage from the FHA.