The FHA Commitment to Fair Housing
February 11, 2025
This insurance reduces the risk associated with lending to borrowers who may otherwise be considered higher risk, encouraging lenders to offer more favorable terms, such as lower down payments and more flexible credit requirements.
A key element of the FHA program is its commitment to fair housing, deeply rooted in the Fair Housing Act.
The act, passed into law in 1968, prohibits housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
As a government agency, the FHA must uphold and enforce the Fair Housing Act in all its programs and operations.
The FHA's role in promoting fair housing is more than helping consumers avoid discriminatory practices. The FHA's mission includes removing barriers to housing opportunity and creating inclusive communities.
This involves educating lenders, real estate professionals, and consumers about their rights and responsibilities under the Fair Housing Act. The FHA also provides resources and support to individuals who believe they have experienced housing discrimination.
The Fair Housing Act and its Impact on FHA Lending
The Fair Housing Act is the cornerstone of fair housing law in the United States. It prohibits discrimination in selling, renting, or financing housing based on protected characteristics. The FHA plays a vital role in enforcing the Fair Housing Act and ensuring everyone has equal housing opportunities.
The following are the protected characteristics under the Fair Housing Act:
- Race: This includes discrimination based on ancestry or ethnic characteristics associated with a particular race.
- Color: This refers to discrimination based on a person's skin color.
- Religion: This protects individuals from discrimination based on their religious beliefs or practices.
- National Origin: This prohibits discrimination based on a person's birthplace, ancestry, or cultural background.
- Sex: This includes discrimination based on gender, sexual orientation, and gender identity.
- Familial Status: This protects families with children under 18 from discrimination. It also includes pregnant women and individuals seeking custody of a child.
- Disability: This prohibits discrimination against individuals with physical or mental disabilities and requires housing providers to make reasonable accommodations for them.
Lenders cannot refuse to make a loan, offer different loan terms, or deny housing opportunities based on a borrower's race, color, religion, national origin, sex, familial status, or disability. KNOW YOUR RIGHTS.
FHA Loan Articles
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October 24, 2024Buying your first home is a major milestone. If you use an FHA mortgage to buy your home, you’ll have two types of insurance to consider. One type is the FHA-required mortgage insurance premium, which is paid for 11 years or the loan's lifetime, depending on your down payment, loan term, and other variables.
October 22, 2024While the Federal Housing Administration sets rules for FHA loans, lenders retain some flexibility in determining interest rates, fees, and specific loan terms. Depending on circumstances, the FHA loan offered by your local bank might not be as competitive as one offered by a credit union or an online lender specializing in FHA products, or vice versa.
October 17, 2024Buying a home is one of the most significant investments Americans make. Understanding how to strengthen your credit profile and leverage the power of credit counseling is essential for successfully navigating the FHA loan process. What should you know about your credit to make the most of your home-buying journey?
March 13, 2024There are plenty of reasons to delay plans to refinance a home. One reason has made big headlines. When borrowers face higher interest rates than originally approved for, that is a good reason to wait to refinance.
