Federal Housing Administration
Today’s real estate, where the day is FHA or Federal Housing Administration, my name is Michael Acquisto. We’re going to go ahead and define that word for you using the sentence in super briefly, discuss it since no one else is here. Just be like me and you discussing it directly.
So FHA is an agency of the United States Department of Housing and Urban Development HUD in Brackett’s. Its main activity is to ensure is the insuring of residential mortgage loans made by private lenders, the FHA set standards for for construction and underwriting, but does not lend money or plans or construct the houses themselves.
OK, so the FHA, what they do is they basically insure residential loans when they’re all bundled up and sent out. So we’ve talked about how loans get sold and packaged and put together and become large bundles on the secondary market. So that’s what the FHA takes care of. There we go. It’s been defined using the sentence and we’re done with it.