2006-07-03 03:39:37 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
FHA is a dept of the government (part of HUD) created to get mortgages to people who might not otherwise qualify. Low to moderate income individuals, first time home buyers, etc. The rates are decent, and for a home to qualify for an FHA loan, it has to be a home in decent shape.
FHA doesn't issue bonds to finance the mortgages. HUD issues bonds, gets money, and lends it out for mortgages thru FHA. HUD bonds are US Government guaranteed and so by definition are of the highest credit quality. Any time you are buying the highest quality bonds, you are trading off yield for safety.
2006-07-03 04:12:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A bond that is paid by FHA just like any other bond except probably not the best return on $$
2006-07-03 10:57:00 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋