FHA Loans FHA loans are a popular home mortgage loan option that have less stringent qualification requirements because they are insured by the Federal Housing Administration (FHA). Borrowers can qualify for an FHA loan with a lower down payment (as little as 3.5%) and a lower credit score than standard conventional loans. The FHA program was developed by the US government in the 1930s in response to the high number of foreclosures at the time. This program provides mortgage lenders with adequate insurance to reduce their risk of loss if a borrower defaults on their mortgage payments. This allows lenders to provide more home mortgages to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment. Talk to one of our professional Mortgage Consultants today to discuss your needs and see if an FHA loan or another mortgage option will best meet your needs.