FHA Loan - Is that actually a real entity? Not really. The fact is, the FHA does not make loans, they GUARANTEE them - and only for first time home buyers or those that meet certain criteria.
What makes these types of loans attractive to lenders and to home sellers is the fact that the government is willing to back them up on their loan purchase.
As of January 2010, the highest home loan amount that the Fair Housing Administration will guarantee is $729,750. But again, only in certain high income areas of the country with higher land values.
There are many facts about FHA loans so if you are in the market for your first home, check out this page - http://www.fha.com/faq.cfm for lots of good information.
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