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An FHA loan is a loan backed by the Federal Housing Administration which is an agency under jurisdiction of the Department of Housing and Urban Development. This government backed loan allows you to buy a home with less strict requirements and insured by the FHA.
This program allows first time home buyers to purchase a home with as little as 3.5% down payment. This is a great program to take advantage of for first time buyers short of down payment funds to buy their first home.
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