FHA Loans - Federally Insured Mortgage Loans

FHA loans are mortgage programs which are regulated and insured by the Federal Housing Administration in the United States.

FHA loans typically enable Americans with lower income to purchase a home that they ordinarily may not be able to get financing for. The FHA program was designed to offer financing companies insurance so they would be willing to lend to a "riskier" applicant.

Originally, the FHA's primary purpose was to insure loans granted by lending institutions. Since then, PMI (Private Mortgage Insurance) companies have become a key part to home lending, and FHA loans are now usually sought by people who can't afford a conventional home loan's down payment requirements or for some reason do not qualify for PMI.