FHA Programs - Protecting Homes of US Families

Federal Housing Administration or simply known as “FHA” is the largest insurer of mortgages in the world. Founded in 1934, it has been insuring over 34 million properties. The housing administration provides mortgage insurance on loans made by their approved lenders all across the United States and its territories. The US housing administration insures various mortgages from single or multi family homes to manufactured homes and hospitals. The housing administration is unique, in the sense that it is the only government agency operating from its self-generated income and cost the tax payers nothing. An account is used for administration’s operation; this is where the proceeds from the mortgages paid by homeowners are deposited. The country is benefited by the housing administration for its economic stimulation in the form of home and community development, which give local communities: jobs, building suppliers, tax bases, school and other forms of revenue.

The congress founded the largest insure of mortgages back in 1934; it became a part of the Department of Housing and Urban Development’s Office of Housing in 1965. When it was founded America was in a bad state, over two million construction workers were unemployed and it was hard for homebuyers seeking mortgages because at that time terms were very difficult to meet. Only 4 households out of 10 were owned by families, majority of the American families live on rent houses, America was primarily a nation of renters. Through the Federal housing Administration’s assistance and insurance program America was able to stand up after the war.
   
FHA programs was a great help during the 1940’s, the administration was able to help financed military housing and homes for returning veterans and their families after the war. The largest insurer of mortgages started the production of millions of units of privately-owned apartments for handicapped, lower income American, elderly and other American who dreams of having their own houses from the 1950’s up the 1970’s. In the 1980’s home buyers were able to get the financing they needed when recession prompted private mortgages insurers to pull out of oil producing states, all thanks to the Insurer mortgage administration. By 2001, American’s homeownership rate rose to an enormous number of 68.1 percent. 

FHA provided American with Mortgage insurances where lenders are given protection against losses as the result of home owners defaulting on their mortgage loans. The mortgage insurance administration will pay a claim to the lender in the event of a home owners’ default, making it let risky for lenders. Certain Loan requirements must be meet to qualify for FHA insurance.

Today’s fluctuating economy leaves many Americans sleepless, thinking about how to pay mortgages and other financial needs. Many became homeless because of the recession. American families who are unable to pay their mortgages left to live in trailer parks but there is always hope for the American family. Every family in America, dreams having a peaceful, tranquil and safe home were they can live happily and through FHA programs, many American dreams of having a safe home became a reality.