What is the Federal Housing Administration?

You may have heard about the Federal Housing Administration, but what exactly does it do? This article will provide you with an overview of the different programs available, their qualifications, and risks. By the end, you should be able to make a well-informed decision on the best way to finance your dream home. Here are some things to keep in 주택담보대출 mind when applying for one of these programs. Read on to learn more. We’ll also cover the loan limits and qualifications.

Mortgage insurance programs

The Federal Housing Administration, or FHA, provides mortgage insurance to low and moderate income families. By insuring loans, the FHA protects lenders against losses if borrowers default on their mortgage. The programs help low-income families purchase single-family homes and multifamily housing and enable private industry to construct and rehab homes. However, they are not free of risks. For this reason, the FHA is heavily regulated to ensure that it remains financially sound.

Loan limits

New FHA loan limits may be available to more people. The new loan limits may increase the maximum loan amount by 25 percent. This proposal is being promoted by Senators Jon Corzine (D-N.J.) and Thomas R. Carper (D-Del.). The new loan limits will also affect entry-level housing. Regardless of the reason, the move is welcome. The Coalition for Affordable Rental Housing has applauded the new loan limits.


You might have questions about the qualification requirements for FHA mortgage loans. These guidelines vary depending on your credit score and the amount of cash you have on hand. For example, if your credit score is 580, you can borrow up to 50% of the home’s price, as long as you have two established credit accounts and no judgments or delinquent federal debt. In addition, you should not have any debt associated with past FHA-insured mortgages.


There are numerous risks associated with the Federal Housing Administration (FHA). Although the agency is committed to helping low and moderate-income borrowers with limited assets, there are several ways the FHA can mismanage its risks. For instance, it may misprize loans and mortgages to achieve cost-savings. And the agency may misjudge costs if the legislation changes. As such, the FHA must be financially sound and avoid any missteps.

Recent profitability

Recent profitability of Federal Housing Administration has improved dramatically since the Obama administration took office. As the housing market continues to rebound, mortgages insured by the agency are expected to generate significant profits once they mature. This is largely due to the tightening of underwriting standards and new protections for homebuyers. But that isn’t the only reason for recent profitability to be so strong. The Obama administration has also introduced new protections for homeowners, including new underwriting standards.

Tax-funded support

In the past, the LIHTC program has been used as a source of affordable housing finance. It is the nation’s largest program. Under LIHTC, Enterprises can invest up to $500 million in affordable housing each year, and are thereby able to reduce the cost of financing and stimulate additional development. However, the current LIHTC funding levels are below the federal cap, and Enterprises’ allocations will decrease as the federal government continues to cut back on the program.