FHA lending

FHA lending is made possible using federal credit to insure the mortgage funds. While this program was rejected at first by many lenders, it is readily available to a large number of borrowers. Even in the tightest money markets, there has always been funding available for FHA government home loans. This type of lending first became available in 1934. The housing market had been financed for 50%-60% of their sales price on a first mortgage of three to five years, with a small second and even third mortgage at increasingly higher interest rates. A FHA government home loan introduced a better way.