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The FHA (Federal Housing Administration) is a federal agency under the U.S. Department of Housing and Urban Development (HUD). FHA mortgage rates are very competitive. And since the FHA doesn’t charge higher rates for lower credit scores, the way Fannie Mae and Freddie Mac do.
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FHA-approved lenders include banks, credit unions, state-chartered and federally chartered savings and loan institutions, mortgage-lending companies, and government housing agencies. Mortgage brokers differ from direct lenders, who make loans directly to borrowers.
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