An FHA loan is a type of mortgage insured by the Federal Housing Administration. It is designed to help low-to-moderate-income borrowers qualify for a home loan, even if they have lower credit scores or limited savings. FHA loans typically require a lower down payment, often as low as 3.5%, making homeownership more accessible. These loans come with specific guidelines, including mortgage insurance premiums that protect lenders in case of default. Borrowers must meet certain eligibility criteria, such as income limits and property requirements, to qualify for an FHA loan. This makes it a popular choice for first-time homebuyers.