This article’s factual accuracy may be compromised due to out-of-date information. Please update this article to reflect recent events or newly available information. An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is fha refinance percent by an FHA-approved lender.
The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance. The FHA makes no loans, nor does it plan or build houses. African Americans and other racial minorities were largely denied access to FHA-backed loans, especially before 1950, and did gain access only in a handful of suburban developments specifically built for all-black occupancy. Until the latter half of the 1960s, the Federal Housing Administration served mainly as an insuring agency for loans made by private lenders. However, in recent years this role has been expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. In 1974 the Housing and Community Development Act was passed.
Its provisions significantly altered federal involvement in a wide range of housing and community development activities. Further changes occurred in the 1977 Housing and Community Development Act, which raised ceilings on single-family loan amounts for savings and loan association lending, federal agency purchases, FHA insurance, and security for Federal Home Loan Bank advances. FHA loans and created a new FHA rental subsidy program for middle-income families. On August 31, 2007, the FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis.