Andrew Cooper (Other)

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Rainer
149,786
Ken Jones, Commercial Real Estate
Kenneth J. Jones, Inc. - Toms River, NJ
Serving Central & Northern New Jersey Since 1971

Andrew Cooper Sounds like you have a handle on this issue.

In fact, the Federal Housing Administration was created in 1934 as a federal insurance company for the purpose of giving banks and other lenders the incentive to loan and to try to stimulate the economy during the Great Depression.

The premise was and remains that if both the buyer and the property being mortgaged meet FHA criteria, FHA will insure the lender against loss for that amount that consists of the difference between 80% to 96.5% of the loan amount. The insurance premium (called the Mortgage Insurance Premium or MIP) is paid by the borrower.

FHA has gone through a series of major changes over the subsequent decades and is now part of the Department of Housing and Urban Development (HUD).

Here's a link to the FHA/HUD website to see a brief history of the FHA.

Hope this helps.

Feb 22, 2019 06:58 AM
Rainmaker
1,717,554
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Uh oh, splitting hairs now.

FHA is a loan insured by FHA/HUD. It is a different type of loan compared to CONV or VA.

Do you know which would be better for your buyer to use?

Do you know why most people have to use an FHA loan?

That's where the answers are.

Feb 22, 2019 05:39 AM
Rainmaker
3,323,606
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

YES, the bank or mortgage company still originates the loan, but it is insured or backed by FHA. The buyer pays a mortgage insurance fee as part of the closing costs for that insurance or backing of fha.

Feb 22, 2019 04:41 AM
Ambassador
5,368,191
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

YEs FHA is the organization that backs the loan.

Learned what FHA was well over 45 years ago when my parents went for an FHA loan to finance their farm.

Feb 22, 2019 01:05 AM
Rainmaker
889,495
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Yeah, FHA is a government agency who among other things insures home loans. You should go see!

https://www.hud.gov/program_offices/housing

Feb 22, 2019 05:31 AM
Ambassador
4,206,438
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

You are understanding correctly, Andrew!

Feb 22, 2019 05:14 AM
Rainmaker
442,783
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Both FHA & VA are Government loans

Feb 22, 2019 04:15 AM
Rainmaker
883,637
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Did a little deeper and find out WHO actually does put the money on the table for the OVERWHELMING number of home mortgages.

 

Feb 22, 2019 03:54 AM
Rainmaker
4,006,836
Richard Weeks
Dallas, TX
REALTOR®, Broker

You got it.

Feb 22, 2019 06:55 AM
Rainmaker
1,881,410
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

You are correct.

Feb 22, 2019 09:42 PM
Rainmaker
1,381,833
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Loving the original questions!

Yes, FHA is a loan that is insured by the feds.  It has a different set of qualification requirements than conventional loans (often easier) but the home needs to meet a certain set of criteria.  The way I see it is that FHA needs to be basically move-in ready with minimal work and VA needs to be move-in ready with no work to be done.  Essentiall all homes (99%) qualify for conventional financing, but not all will qualify for FHA and fewer for VA.

Feb 22, 2019 09:05 AM
Rainmaker
898,331
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

You are on the right track, Andrew Cooper 

Feb 22, 2019 08:03 AM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Correct - but there is much more to it than that.

Feb 22, 2019 07:27 AM
Rainmaker
1,877,294
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

I like Lyn Sims answer.

Feb 22, 2019 07:14 AM
Rainmaker
875,323
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

FHA is an acronym that could be a bunch of stuff

Feb 22, 2019 04:11 AM
Rainmaker
4,168,655
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

The lender is the source of funding. The FHA insures it!

Feb 22, 2019 03:49 AM
Rainmaker
1,716,887
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

What Bob Crane said.

Feb 22, 2019 02:42 AM
Rainmaker
104,511
Scott Lawson
America's Home loans - Santa Rosa, Petaluma Mortgage Broker - Santa Rosa, CA
Mortgage Broker FHA, VA, refinance or purchase

Yep, fully insured by the US Government. Because of the insurance, there is virtually no risk to the lender which is why FHA loans carry a lower interest rate than other products. It's always good that the buyer/borrower be shown all options that they qualify for and let them make the final choice...

Feb 22, 2019 01:05 PM
Rainmaker
6,556,246
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

You have some good answers. 

Feb 22, 2019 11:05 AM
Rainmaker
5,571,411
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Kenneth J. Jones gave you the history and details of FHA....

Feb 22, 2019 08:14 AM
Rainmaker
5,538,196
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Andrew.

Many good answers here.  A

Feb 22, 2019 06:38 AM
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

You are correct.

Feb 22, 2019 05:39 AM
Rainer
314,673
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

A FHA approved Mortgage banker or bank starts the loan, closes the FHA loan which is sold on the secondary market, Federal Housing Authority under HUD INSURES the loan

Feb 22, 2019 03:51 PM
Rainmaker
4,067,009
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

You received a number of good responses here.

Feb 22, 2019 11:53 AM
Rainmaker
4,895,671
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

FHA is a government agency, and offers loans.

Mar 07, 2019 05:12 PM
Rainmaker
4,433,683
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Yes.

Feb 24, 2019 06:51 AM
Rainmaker
3,979,375
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

The government is involve 

Feb 23, 2019 02:31 PM