Murfreesboro How FHA Loans Work

How FHA Loans Work

FHA loans are issued by private lenders, including banks, credit unions and online lenders — but they’re guaranteed by the Federal Housing Administration, a government agency. That guarantee, which protects lenders against losses if you default, means borrowers who may not have great credit or who don’t have a big down payment have an easier time qualifying.

A lot of Murfreesboro first-time homebuyers opt for FHA loans, but you don’t need to be a first-time buyer to get one. Any borrower can benefit from the easier qualifying process, as long as you’re buying a house or a multifamily residence where you’ll live most of the time.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.