<P> An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA - approved lender . FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford . To obtain mortgage insurance from the Federal Housing Administration , an upfront mortgage insurance premium ( UFMIP ) equal to 1.75 percent of the base loan amount at closing is required , and is normally financed into the total loan amount by the lender and paid to FHA on the borrower 's behalf . There is also a monthly mortgage insurance premium ( MIP ) which varies based on the amortization term and loan - to - value ratio . </P>
<P> An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA - approved lender . FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford . To obtain mortgage insurance from the Federal Housing Administration , an upfront mortgage insurance premium ( UFMIP ) equal to 1.75 percent of the base loan amount at closing is required , and is normally financed into the total loan amount by the lender and paid to FHA on the borrower 's behalf . There is also a monthly mortgage insurance premium ( MIP ) which varies based on the amortization term and loan - to - value ratio . </P>
funds for federal housing administration ( fha ) loans are usually provided by
funds for federal housing administration ( fha ) loans are usually provided by
FHA - approved lender
FHA - approved lender