Federal Housing Administration (FHA) loans are government-backed mortgages designed to help low- to moderate-income individuals and families purchase homes. These loans typically require lower down payments, often as low as 3.5%, making homeownership more accessible. FHA loans also have more flexible credit score requirements compared to conventional loans. FHA loans are insured by the FHA, which means that lenders are protected against losses if borrowers default. This insurance allows lenders to offer better terms, such as lower interest rates. FHA loans can be used for various types of properties, including single-family homes, multi-family units, and certain condominiums.