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
March 25, 2025What does it take to sell a house purchased with an FHA mortgage? Are there special rules, restricrtions, or added considerations? We examine some key questions and their answers to FHA real estate sales issues.
March 24, 2025If you are selling a home, you may need to negotiate with buyers to fund their purchases with an FHA mortgage. What do you, as a seller, need to know about FHA mortgages and how they may differ from conventional loans? We examine some common issues.
March 24, 2025How much do you really know about how FHA home loan interest rates are set and what factors influence them before your lender makes you an offer? We explore some key points about FHA loan rates, FICO scores, and debt ratios.
March 11, 2025Adding a co-borrower to your FHA is a way to offset fears that you won't qualify for the mortgage on your own. An FHA loan co-borrower with a more substantial financial profile may offset the primary borrower's weaknesses, demonstrating a reduced risk to the lender. But for an FHA loan, don't assume that one borrower with good credit scores can offset one with non-qualifying scores. We ask 20 questions about co-borrowing to help you better plan for your FHA loan.
March 10, 2025Even if you aren’t considering your home loan options right this second, it’s smart to know your options if you decide to pursue a new home later. To that end, using a mortgage calculator is a smart choice for setting some basic budgeting parameters as you plan your path toward home ownership. A mortgage calculator helps you plan for future financial scenarios, such as buying new or refinancing a current home.
