History of FHA Loans

FHA Loans are widely available today and are issued to people who might not otherwise be approved for a conventional loan. The FHA is able to do this by extending some great benefits through the FHA loan program. Here is a history of the FHA loan program, and what the benefits mean for you as a borrower.

- 1934: In 1934 Congress created the Federal Housing Administration (FHA). Part of the FHA included a loan program to help families who were struggling during the Great Depression.
- 1965: The FHA becomes a part of the US Department of Housing and Urban Development (HUD).
- 1930s – 1960s: The FHA served mainly as an insuring agency for loans issued by private lenders.
- 1950s – 1970s: The FHA helped aid the production of millions of units of privately-owned apartments for elderly Americans, low-income families and Americans with disabilities.
- 1980s: The FHA made it possible for Americans to still borrow money for new homes when private mortgage insurers were pulling out of certain states.
- 2001: The rate of homeownership reached an all time high with 68.1% of all Americans owning homes.
- Today: Since the program started, the FHA and HUD have insured over 34 million homes. There are currently around 4.8 million FHA Loans being used in the US.

Benefits of the Program

The benefits of using an FHA Loan are much greater than conventional loans. For starters, the FHA only requires around 3% for a down payment on the house, whereas conventional loans typically require about 20%. With an FHA loan, you won’t have to pay costly private mortgage insurance because your loan is already guaranteed for you by the Federal Government. The other great benefits include low interest rates, easy approval and streamline refinancing.

How to get Started

To get started, you may want to get pre-approved for an FHA Loan. This way you will know if you meet the lender’s requirements and you’ll get an idea of how much you can afford for a new house. Once you have found your house, you’ll need to find an FHA-approved lender and go through all the necessary steps to obtain the FHA Loan including providing credit scores, financial information and having the house appraised.

Get Pre-approved Instantly!

Getting pre-approved for an FHA Loan has never been easier. Simply fill out our secure online form and we’ll have you pre-qualified for free!

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