Federal Housing Administration

What Does Federal Housing Administration Mean?

The Federal Housing Administration (FHA), established in 1934, is a federal agency that provides mortgage insurance to qualified lenders. By offering this insurance, the FHA boosts lenders’ confidence in extending mortgage loans to borrowers.

Insuranceopedia Explains Federal Housing Administration

Since mortgages can be very expensive, many people find it difficult to secure mortgage loans to buy a house. With FHA-backed insurance, mortgage lenders are assured that they will not suffer significant losses if a borrower defaults on their mortgage payments. As a result, they can issue loans to a broader range of borrowers.