Why Get an FHA Loan?
(And What Is It?)

The Federal Housing Administration (FHA), under the US Department of Housing and Urban Development (HUD), operates a mortgage program that aims to make home ownership possible for more people. The FHA doesn’t lend money itself: what it does is to reimburse the lender if a borrower defaults on an FHA home loan. Since lenders have a lot less risk in this case, they’re more likely to make loans, and borrowing costs are reduced.