The Federal Housing Administration (FHA) is a government agency established in 1934 to improve housing standards and conditions. It provides mortgage insurance on loans made by approved lenders, which helps make homeownership more accessible for individuals and families, especially those with lower incomes or less-than-perfect credit. By insuring these loans, the FHA encourages lenders to offer more favorable terms, such as lower down payments and interest rates. This support plays a crucial role in promoting affordable housing and stabilizing the housing market, contributing to the overall economic growth of the country.