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FHA stands for Federal Housing Administration; the FHA is an arm of the Department of Housing and Urban Development (HUD). The primary focus of the FHA is to encourage homeownership in the United States. To do this, the FHA insures mortgages against borrower default.
What Is an FHA Loan? An FHA Loan is a government mortgage thatâs backed by the Federal Housing Agency (FHA). FHA Loans offer low down-payment and credit requirements, as well as less-stringent underwriting guidelines than conventional loans. At Bank of Internet USA, our FHA Loan rates are among the lowest in the nation.