• The Federal Housing Administration (FHA) offers mortgage insurance to approved lenders.
  • The agency was founded in 1934 and became part of the US Department of Housing and Urban Development (HUD) in 1965.
  • The FHA Home Loan Program is designed for borrowers who cannot make large down payments, have a lower credit score, and are not eligible for conventional mortgages.
  • Borrowers with FHA loans must purchase FHA mortgage insurance.
  • Mortgage Insurance Premiums (MIP) charged on FHA-insured loans help pay for the program.