Federal Housing Administration (FHA) Loan

A Federal Housing Administration (FHA) loan is a government-backed mortgage designed to help borrowers with lower credit scores or smaller down payments, qualify for a home loan. These loans offer competitive interest rates and lower down payment requirements, making homeownership more accessible. 

FHA loans are important for expanding borrower eligibility and managing risk, as the FHA insures the loan against default, providing added security for lenders and increasing their ability to offer favorable terms.