FHA (Federal Housing Administration)

The Federal Housing Administration (FHA) is a government agency that supports homeownership by providing mortgage insurance on loans made by approved lenders. This insurance protects lenders against losses if borrowers default on their loans, making them more willing to lend to people with lower credit scores or smaller down payments. As a result, FHA loans often have lower interest rates and down payment requirements compared to conventional loans, helping more Americans become homeowners. The FHA also sets standards for construction, ensuring safe and sound housing.