§ 27003 Real Property Loan Insurance

• •Banks and loan companies can give out loans for houses or land if the government (Federal Housing Administrator) promises to insure them.
• •This means if you can't pay back the loan, the government helps cover the loss.
• •The loan must be for real property (like a house) or a long-term lease.

You want to buy a house but don't have all the money upfront.

A bank can give you a loan because the government says they'll insure it. If you stop paying, the government helps the bank get their money back.