The Federal Housing Administration (FHA) is a government agency that provides mortgage insurance on loans made by FHA-approved lenders. The FHA was created in 1934 to help promote homeownership and make it more affordable for people to buy homes.

The FHA does not make loans directly to homebuyers. Instead, it provides insurance on loans made by private lenders, which protects the lenders against loss if the borrower defaults on the loan. This insurance allows lenders to offer home loans with more favorable terms, such as lower down payments and more lenient credit requirements, to borrowers who might not otherwise qualify for a mortgage.

The FHA also sets standards for the construction and quality of homes that are eligible for its mortgage insurance programs. These standards are intended to protect homebuyers from buying homes that are unsafe or do not meet minimum property standards.

In addition to its mortgage insurance programs, the FHA also offers a variety of other housing programs, such as rental assistance and home improvement loans. These programs are designed to help low- and moderate-income families afford decent housing and improve the quality of their homes.

Federal Housing Administration (FHA)

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