Mortgage Authority FHA (Federal Housing Administration) mortgage is a type of mortgage loan that is insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The purpose of the FHA insurance is to provide mortgage lenders with protection against losses that may result from borrower default.

FHA loans are designed to help lower- and moderate-income borrowers, who may not qualify for conventional loans, purchase a home. They typically have lower down payment requirements, more lenient credit score standards, and higher debt-to-income ratios compared to conventional loans.

FHA loans can be used to purchase or refinance a single-family home, as well as certain manufactured homes, condominiums, and townhomes. They can also be used to make energy-efficient upgrades to a home. Borrowers who choose an FHA loan must pay a mortgage insurance premium, which can be rolled into the loan amount.