One branch of the Housing and Urban Development (HUD) Department is the Federal Housing Administration, abbreviated FHA. The FHA is the government body which is tasked with administration and dispensation of home loan insurance.
The main purpose of the FHA loan insurance is to help first time buyers obtain loans by covering the risk to the lender up to a certain point.
Lenders don’t usually trust first time home buyers since they know nothing about them, but are more likely to consider giving them a mortgage if they have the assurance of coverage from the FHA.
Looking to buy a home for the first time, but having a rough time getting a loan approved?
You may be able to get assistance through the FHA’s Mortgage Insurance program.