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Exactly what are FHA mortgage loans? A Federal Housing Administration (FHA) loan is really a mortgage issued by an approved FHA lender. The Federal Housing Administration insures the mortgage and issue the mortgage itself. Borrowers may use FHA insured loans for single-family, multi-family and manufactured homes. An FHA backed mortgage offers lower interest rates than a conventional mortgage, and you may be eligible for the loan with a not up to par FICO score.

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