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Federal Housing Administration AKA FHA
A U.S. government agency established in 1934 to increase homeownership opportunities for Americans. The primary role of the FHA is to provide mortgage insurance to approved lenders, which protects them from financial losses in cases of borrower defaults. This insurance allows lenders to offer mortgages to borrowers who may not qualify for conventional loans due to lower credit scores or smaller down payments. In addition to mortgage insurance, the FHA also sets standards for property requirements and loan limits. As of 2021, the maximum loan limit for a single-family home in the United States is $356,362. The FHA has played a vital role in making homeownership more accessible to millions of Americans, especially those with lower incomes and credit scores. However, there have been criticisms of the agency's reliance on taxpayer subsidies, as well as concerns over the quality of loans it guarantees. Despite these challenges, the FHA continues to be an important player in the U.S. housing market.
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