Rest assured that C. Gaba Appraisals is an FHA-approved appraisal firm in Alabama. This indicates that we are certified and approved by the FHA to do reports for property loans insured by them. We're trained and understand the rules and procedures in FHA's guidance and policy documents.
The FHA is the Federal Housing Administration, which is a federal agency in the United States Department of Housing and Urban Development (HUD); if your financial transaction is an FHA-secured loan, it means it is secured by them. The lending company takes care of all the loaned money - the FHA simply secures the transaction by providing mortgage insurance in case the borrower defaults on his or her loan. Low-income and moderate-income borrowers benefit the most from FHA-backed loan programs. The point of the Federal Housing Administration is to help credit-worthy buyers get approved for mortgages that they otherwise would not. Remember that the lender working with the the Federal Housing Administration is allowed to choose which appraisers they work with, different from VA appraisal panel.
Typically, a buyer has to pay less of a down payment on an FHA-insured loan, while the rates remain standard market rates. Those with lesser incomes or less starting funds to put down on a loan are helped the most from FHA loan programs.
