An FHA loan is a type of mortgage insured by the Federal Housing Administration, designed to help low-to-moderate-income borrowers qualify for home financing. These loans typically require a lower down payment, often as low as 3.5%, making homeownership more accessible for many people. FHA loans have flexible credit score requirements, allowing individuals with less-than-perfect credit to secure financing. They can be used to purchase single-family homes, multi-family properties, and even some rehabilitation projects, making them a popular choice for first-time homebuyers and those looking to invest in real estate.