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
September 19, 2023The FHA Handbook serves as a crucial resource for mortgage lenders, appraisers, underwriters, and other professionals involved in the origination and servicing of FHA-insured home loans. It outlines the policies and requirements for FHA-insured mortgages.
September 13, 2023FHA rehab loans are a specialized type of mortgage loan offered by the Federal Housing Administration that allows borrowers to finance both the purchase or refinance of a home and the cost of needed repairs.
September 8, 2023Borrowers considering an FHA loan should be familiar with some basic loan terminology. These loans are popular among first-time homebuyers and those with lower credit scores because they often offer more flexible eligibility requirements and lower down payment options.
September 2, 2023You may have heard the terms co-borrower and cosigner in connection with your FHA loan process, but aren't sure about the distinction. Both a co-borrower and a cosigner can help a primary borrower qualify for a mortgage, but they have different roles and responsibilities.
August 27, 2023The Federal Housing Administration has specific credit requirements and guidelines for borrowers looking to buy or refinance homes with an FHA loan. In addition to what FHA guidelines state, lenders may have more stringent requirements that may vary from one lender to another.
