An FHA Mortgage loan is a loan that is insured by the US Federal Housing Administration and provided by FHA approved lenders. FHA insured mortgage loans are considered federal assistance as the underwriting guidelines are not as strict as those of a conforming loan. FHA insured mortgage loans require an up front mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which can be financed into the total loan amount. In addition to the UFMIP, monthly mortgage insurance is also required, which varies depending on the amortization term and loan-to-value ratio.
