Federal Housing Administration (FHA)

The Federal Housing Administration (FHA) is a government agency in the United States that helps people obtain home loans by insuring mortgages. This means that if a borrower defaults, the FHA will pay the lender, reducing their risk. By providing this insurance, the FHA encourages lenders to offer loans to those who might not qualify for traditional financing, such as first-time homebuyers or those with lower credit scores. This, in turn, helps increase homeownership and stabilize communities. FHA loans typically require lower down payments and have more flexible credit requirements compared to conventional loans.