Home ownership is the American dream and a large portion of an individual's personal wealth. Yet, buying a home can be prohibitively expensive. The Federal Housing Administration (FHA) makes home ownership a possibility for many Americans.

Significance

The FHA helps people get federally insured home mortgages. It also provides seniors with income through reverse mortgages and even allows people to include the cost of energy saving improvements into the cost of their mortgage through a FHA Energy Efficient Mortgage.

Function

People considering buying their first home can turn to the FHA for a low-interest mortgage. They can finance for up to 97 percent of the homes value.

Types

FHA loans are also available for purchasing or refinancing a fixer-upper property. The buyer must detail the work to be done and the cost of renovations, have an appraisal done after the work is complete and must plan on occupying the home.

Benefits

Seniors 62 years and older and who own their homes or have low balances on their mortgage may be able to get a FHA reverse mortgage. This converts the home's equity into cash, which can be used to pay for living expenses.

Considerations

To find a FHA lender, you simply have to go to the Housing and Urban Development (HUD) website and fill out its questionnaire. It provides you with the contact information for approved lenders in your area.

Source:

Housing and Urban Development (HUD): Let FHA Loans Help You

HUD: Mortgage Insurance

HUD: Funds for Handyman-Specials and Fixer-Uppers

More Information:

HUD: Top Ten Things to Know if Your Interested in a Reverse Mortgage

HUD: Lender List