| FHA. The Federal Housing Administration is the government-agency whose primary purpose is to insure residential mortgages for the underprivileged. |
Federal Housing Administration offers programs to aid buyers of single family mortgage who are unable to obtain financing from conventional mortgage lenders. Although FHA loans are still issued by private lenders, the agency sets interest rate ceilings and subsidized insurance.
Created in 1934 by the National Housing Act, FHA is now a part of the Department of Housing and Urban Development.
