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The Federal Housing Administration is a government program that supports home ownership for consumers who have low down-payment and / or imperfect credit. The rates for FHA a generally very competitive and even lower than normal conventional loan products. However, the risks of the program are covered by consumer-paid mortgage insurance. This insurance doesn’t cover the homeowner / borrower, but actually covers the government’s risk for borrowers who default on their loans.

It is a great product for helping people to get started in the housing market – and for those who need a little extra lenience due to credit problems.

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