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FHA Loans are loans backed by The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). FHA does not lend money but rather insures the loan against default by the borrower. Since the disappearance of the no money down loans FHA loans have become increasingly popular because their 3.5% down payment requirement is the lowest of all loans currently available to most home buyers. FHA loans are generally utilized by home buyers who cannot qualify for conventional mortgages because FHA loans offer more flexibility with respect to down payment amount, credit score, debt to income (DTI) ratio and other important loan qualification variables. FHA loans charge an upfront mortgage insurance premium (MIP) which makes FHA loans origination fees significantly greater than conventional loans. - Payday Loans Minneapolis
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