The Federal Housing Administration (FHA) "insures" loans, meaning they provide protection to the lender in case the borrower is unable to make payments. However, FHA does not actually provide the loan; it is the lender who makes the loan and sets the interest rate with the borrower.
These are questions that the above text answers:
1. What is the role of the Federal Housing Administration (FHA) in home loans?
2. Does the FHA provide loans directly to borrowers?
3. What does it mean for the FHA to "insure" loans?
4. Who sets the interest rate for FHA loans?
5. What happens if a borrower is unable to make payments on an FHA-insured loan?
6. What is the main purpose of FHA loan insurance?
7. Is the FHA responsible for providing protection to lenders or borrowers?
8. Does the FHA play a role in the loan approval process?
9. Can borrowers negotiate the interest rate on an FHA-insured loan?
10. What is the difference between the lender and the FHA in the loan process?