Philadelphia FHA Loan

The Federal Housing Administration doesn’t actually lend you the money for a mortgage. The loan comes from an FHA-approved lender, and the FHA guarantees it. Borrower pays for the guarantee through mortgage insurance premium payments to the FHA. The lender takes on less risk because the FHA will pay a claim to the lender if you default on the mortgage. Due to this insurance, credit and income requirements for an FHA Loan are more lenient