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FHA home mortgages were developed to support people who otherwise have difficulty qualifying for a loan. Individual lenders set interest rates and repayment periods, however, not the government. FHA simply insures these loans to lower the risk to the lender. Since FHA protects lenders against losses, the lenders are generally willing to create loans with easier qualifications.

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H.R. 5503, The FHA Multifamily Loan Limit Adjustment Act of 2006 - Cost per Average Family: $0.67
Under the National Housing Act, the Federal Housing Administration (FHA) is authorized to insure private loans used to finance certain multifamily homes, subject to loan limitations specified in appropriation acts. H.R. 5503 would increase the current limit on the value of individual loans that FHA can guarantee in certain high-cost areas of the country under 12 of its 20 multifamily loan guarantee programs, such as housing for moderate and displaced families and cooperative projects. (High-cost...

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