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Mortgage Glossary

Federal Housing Administration (FHA)

Mike Starr·Reviewed August 2026

The Federal Housing Administration is a U.S. government agency within the Department of Housing and Urban Development (HUD) that insures mortgage loans made by approved lenders. FHA insurance protects lenders against losses if a borrower defaults, enabling lenders to offer loans with lower down payments and more flexible credit requirements. The FHA does not make loans directly.