Loans For Bad Credit History

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The Federal Housing Administration (FHA) insures mortgage loans. FHA-approved lenders who offer FHA products receive a guarantee from the federal government-if a borrower defaults, the FHA pays the remaining balance on the loan and HUD forecloses on the property. The credit risk associated with subprime loans prompted the FHA to toughen its credit requirements for its popular 3.5 percent down payment program, according to The Wall Street Journal. Lenders, who have the final…

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