Definition: The FHA is part of the U.S. Department of Housing and Urban Development. Its mortgage-insurance programs protect approved lenders against covered losses on qualifying loans.
Example
A buyer obtains an FHA-insured home loan from an FHA-approved lender. The lender supplies the loan; FHA provides the mortgage insurance.
Keep the distinction clear
FHA insurance is different from conventional PMI and from a VA loan guarantee. An FHA appraisal also does not replace a buyer’s home inspection.
Related terms
Conventional Loan · Private Mortgage Insurance (PMI) · Department of Veterans Affairs (VA)
Keep studying
FHA Appraisals and Required Repairs: What Students Should Know
References: HUD: FHA Single Family Housing Policy Handbook
Pronunciation (US): FED-er-uhl HOW-zing ad-min-uh-STRAY-shun; FHA: ef-aych-AY (capitals show stress)
Pronunciation reference: Merriam-Webster
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