The Federal Housing Administration (FHA)

The Federal Housing Administration (FHA) is a U.S. government agency established in 1934 to improve housing standards and provide access to home loans. It does this by offering mortgage insurance to lenders, which protects them against losses if borrowers default. This support enables lenders to offer loans with lower down payments and more flexible credit requirements, making homeownership more accessible, especially for first-time buyers. The FHA plays a crucial role in promoting affordable housing and stabilizing the housing market.