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Federal Housing Administration; agency that is a part of the U.S. Department of Housing and Urban development providing insurance on FHA mortgage loans.
This is a loan that does not meet the general guidelines of government sponsored enterprises (such as Fannie Mae and Freddie Mac) and is therefore usually kept by the lending institution and not sold. These types of loans are used when the borrowers are
self-employed, have unique income circumstance, or want to borrow outside the maximum loan amount. Examples of non-conforming loans are jumbo loans and bank statement loans.
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