What Is a FHA Loan?

An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). Designed for low-to-moderate income borrowers, FHA loans require a lower minimum down payments and credit scores than many conventional loans.

With FHA loans, your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance. These factors make FHA loans popular with first-time homebuyers.