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FHA is not a loan, It?s an Insurance! If a property buyer defaults, the lender is paid through the insurance fund. An FHA loan allows you to get a house with as little as 3% advance payment, rather than the higher percentages required to secure many conventional loans. Taking advantage of the FHA loan program is an excellent means for very first time buyers, or you are not a shortage of deposit funds, to get a home. It is not a program reserved just for new homeowners. You can buy your third or fourth home with an FHA loan. The only stipulation is that you simply may only have one FHA loan at the same time.
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