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FHA Loans (Federal Housing Administration) are government-backed loans that allow the borrower to have a minimum amount of money to put down on a home. Some people believe that FHA is only for first time homebuyers, or for people who have had credit problems in the past. Actually, FHA is a great loan for everyone.
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The recipients of an FHA loan are in reality the housebuyers with small down payments, individuals with a house with a big chunk of take-home pay and borrowers with low credit scores. The FHA doesn’t lend money, but they insure mortgages.
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