What Is FHA Mortgage Insurance?

FHA mortgages and mortgage insurance are government programs designed to help first-time homebuyers and other in-need borrowers get loans to purchase homes. FHA mortgage insurance is required for all FHA loans and provides protection for the lender if the borrower defaults on their mortgage. The insurance also allows lenders to offer better deals to those who have lower credit scores or small down payments. The cost of FHA mortgage insurance is two-part: an upfront cost and a monthly cost. It is important to understand how both the loans and the insurance work, so consulting a financial advisor is recommended.

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