FHA
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After mortgage crisis many banks are required higher credit scores and sizable down payments, so many people turn to Federar Housing Administration for help.
This government institution requires only 3 percent down payment, and doesn’t require any credit scores.
FHA insure $24 billion in mortgages a month, up from $6 billion, just a year ago.
FHA program is to minimize risk, but too many bad loans may cause big problems, just like with Fannie Mae and Freddie Mac.
Rate of prime loans entering the foreclosure is 0.35 percent, for subprime loans is 2.07 percent. FHA secured loans foreclosure rate is equal 0.95 percent.
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