What Is A Federal Housing Authority Bond?
An FHA bond (Federal Housing Authority bond) is a form of insurance required to offer an FHA loan. Mortgage brokers can purchase this type of surety bond instead of audited financials. The FHA bond is more financially affordable and allows brokers to offer FHA loans to more people.
Before a broker purchases a surety bond from an agency, he or she must submit themselves to a credit check, have their application approved, and go through other screening processes.