How is the Federal Housing Authority Funded?

The FHA is 100% funded by the proceeds from mortgage insurance included in the mortgage payments. It is the only government agency that is entirely self-funded with no assistance from the American taxpayers. The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely. FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.