This program is open to first - time homebuyers, trade up and trade down borrowers and provides a 30 - year, fixed - rate government insured loan with no points. (nj.gov)
Essentially, the federal government insures loans for FHA - approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. (jmj.me)
Lower cost: FHA loans have competitive interest rates because the Federal government insures the loans for lenders. (consumerbadcreditguide.com)