The Federal Housing Administration
Fha programs is not the actual provider of mortgage credit but the collector of premiums for the lending institutions that offer credit. Thus, its major role is to act as the collateral side of the loan or buffer for the financially unstable borrower- it wins the heart of the lender to finance the prospective buyer who single- handedly would receive a cold shoulder from banks. To do this, the federal body has a margin of collecting monthly payments from the buyer, known as the
Fha Loan Rate .
