Explanation:
As an agency within the Department of Housing and Urban Development, the FHA has an important role in providing affordable mortgages, especially during tough economic times. The FHA insures the loans and reimburses lenders if the borrowers default.
The Federal Housing Administration (FHA) is a U.S. agency offering mortgage insurance to FHA-approved lenders that meet specific qualifications.
Most FHA loans are for individuals who could not afford, and would not ordinarily qualify for, a traditional home mortgage loan.
