Federal Housing Administration (FHA) Loan
A federal agency, created by the National Housing Act of 1934, for the purpose
of expanding and strengthening home ownership by making private mortgage
financing possible on a long-term, low down payment basis. The vehicle is a
mortgage insurance program, with premiums paid by the homeowner, to protect
lenders against loss on these higher risk loans. Since 1965, FHA has been part
of the newly created Department of Housing and Urban Development (HUD).