What are FHA Mortgages?

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An FHA Mortgage is a special type of home financing that is backed by the Federal Housing Administration. What began as a home loan program designed to help our nation get out of the Great Depression, eventually evolved into what continues to be one of the most popular home financing programs. Learn more about FHA Mortgages by reading the highlights below.

Want to learn more about FHA Loans and see if you qualify? Contact us for additional information.

  • Call 866-544-7013 to speak with a mortgage professional serving your area.
  • Pre-Qualify Now
  • Use the Rate Quote Form on this page to request additional information.

FHA Mortgage History & Overview

How the Program Started

The FHA Loan program was initially launched in the 1930s during the Great Depression. The program was originally designed to help protect mortgage lenders from substantial loss, but it also was meant to boost the economy. During this period in history, rates of foreclosures and defaults rose dramatically. The FHA Loan program helped provide mortgage lenders with sufficient insurance, giving them a much needed cushion in the event that their borrowers fell behind on their payments. The program also benefited consumers, as it provided more affordable access to homeownership. The program also helped stimulate other areas of the economy by increasing home construction and reducing unemployment.

How Does the Program Work?

The FHA itself does not give out the loan, as is a common misconception. Instead, the FHA insures certain loans offered by FHA-approved mortgage lenders who meet very strict federal guidelines. The mortgage lenders provide the FHA Loans to the borrowers, who pay a special FHA mortgage insurance premium. If an FHA  mortgage goes into default, the FHA’s insurance program protects the lender from loss.

Are There Different FHA Loan Options?

Yes! There are several different loan programs offered under the FHA Loan umbrella. Here are a few examples:

  • Fixed Rate FHA Mortgages
  • Adjustable Rate Mortgages (Mid America Mortgage offers a 5/1 FHA Adjustable Rate Mortgage).
  • FHA Renovation Loans
  • …and more.

Talk to your mortgage lender for details on the different types of FHA Loans and find out which program is best for you.

What are the Benefits of an FHA Loan?

  • Lower down payment
  • Lower minimum credit score
  • Backed by the FHA, so lenders can offer competitive rates

FHA Loans offer lower down payments than traditional home loans, usually as low as 3.5%, whereas other loans can require as much as 20% down. FHA Loans also help home buyers with less-than-perfect credit scores obtain home financing, as the minimum credit score requirement is typically lower than other conventional loans. Finally, the FHA insures the loan, which helps the lender avoid financial loss if the borrower should default. This extra protection allows the lenders to offer competitively low interest rates on FHA loan products.

Please note FHA underwriting guidelines are subject to change. Contact one of our mortgage professionals today for the most up-to-date guidelines and a free mortgage rate quote. Call 866-544-7013.

Our Brands

The various mortgage brands run by Mid America Mortgage, Inc.

Contact Us

Company Headquarters:
Mid America Mortgage, Inc.
15301 Spectrum Drive, Suite 405
Addison, TX 75001
Phone: 214-261-3300
Toll Free: 866-544-7013
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Wholesale Division
550 Warrenville Rd
Lisle, IL 60532
Phone: 630-796-6092
Toll Free: 855-528-4572

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At Mid America Mortgage, Inc. we're always looking for talented mortgage professionals to join our growing team. We're an Equal Opportunity Employer offering a highly competitive compensation and benefits package.

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