FHA Loan
A mortgage insured by the Federal Housing Administration that allows low down payments and requires mortgage insurance premiums.
Quick flashcard
What does FHA Loan mean on the Texas real estate exam?
Answer: A mortgage insured by the Federal Housing Administration that allows low down payments and requires mortgage insurance premiums.
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FHA Loan definition
An FHA loan is insured by the Federal Housing Administration. It helps buyers with smaller down payments or lower credit scores qualify, allowing a down payment as low as 3.5 percent for qualifying borrowers. Because the government insures the loan, the borrower pays mortgage insurance premiums.
FHA charges an upfront mortgage insurance premium, which can be financed into the loan, plus an annual premium paid monthly.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
From definition to recall
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