What Is a Federal Housing Administration (FHA) Loan?A Federal Housing Administration (FHA) loan is a home mortgage that is insured by the government and issued by a bank or other lender that is approved by the agency.1 FHA loans require a lower minimum down payment than many conventional loans, and applicants may have lower credit scores than is usually required.2 The FHA loan is designed to help low- to moderate-income families attain homeownership. They are particularly popular with first-t...