Federal Housing Administration

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Home Real Estate Terms Glossary Federal Housing Administration

What is Federal Housing Administration?

The FHA is a government-run mortgage insurer in the US that provides mortgage insurance on various types of properties, such as single-family home loans. It is an agency within the US HUD (Department of Housing and Urban Development) that was formally established on June 27, 1934, by the National Housing Act. If a real estate borrower defaults on a loan, then the FHA pays the bank or lender a specified amount of money.

Examples of what Federal Housing Administration does

  • Example 1: It improves housing standards.
  • Example 2: It insures home mortgage loans that banks and other private lenders make.

Here’s Investopedia’s definition of the Federal Housing Administration .

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