What is an FHA Loan?

An FHA loan is a mortgage loan option for U.S. home buyers. It is guaranteed by the Federal Housing Administration, an agency of the Department of Housing and Urban Development, and issued by FHA-approved lenders across the country.

FHA loans are well known for their affordability – namely their 3.5% percent down payment and relatively lenient credit requirements. According to HUD, the FHA has insured more than 47 million mortgage loans since its inception in 1934.