FHA

media type="youtube" key="Jf3jlJ39dFM" height="323" width="694" **Federal Housing Administration** which was created as part of the housing act of 1934. the reason the FHA was established was to improve housing standards and conditions, and to provide a good home financing system. The founder of FHA is Lei Barry.

FHA is a federal assistance mortgage loan in the United St ates insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders. L oans that were extended by FHA-approved lenders typically are designed to assist borrowers unable for various reasons to get the approval necessary for conventional home loans.

The FHA helped increase the number of people who could afford a down payment on a house, because of this the market of single family homes also increased. More apartments for the elderly, handicapped, and the lower income americans started to grow. the economy would not support the increase in homeowners, the FHA steadied prices.

Currently, the FHA has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. The troubled loans are now weighing on the agency’s capital reserve fund, which has fallen below its Congressional mandated minimum of 2%, from over 6% two years ago.