FHA Mortgages are loan products which are insured by the Federal Housing Administration, which began in 1934.  Prior to the creation of FHA, mortgages typically required 50% down payments, had amortization schedules of 5 years or less, and often included a balloon payment.  It is no surprise that only 1 in 10 households owned homes during this time; America was a nation of renters.  After the creation of FHA, financing became much more affordable for homebuyers.  FHA’s Mortgage Insurance Premium (MIP) insures lenders against losses, should the property owner default on their mortgage.  FHA Mortgages can be used to Purchase, Build, Refinance or Renovate residential properties which will be primary residences.

**Sierra Pacific Mortgage Company, Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.