FHA loans are government-backed, mortgages insured by the Federal Housing Administration, an agency of the US Department of Housing and Urban Development. Borrowers pay for Mortgage Insurance, which protects the lender from a loss if the borrower defaults on the loan. Program designed for low-to-moderate income, challenged credit, and borrowers that are unable to make a large down payment. Perfect for, but not exclusive to, 1st time homebuyers. This does not exclude any borrower eligible for the FHA loan program.