An FHA loan is a government-backed mortgage designed to help first-time homebuyers and those with limited savings or lower credit scores qualify for a home. Insured by the Federal Housing Administration, it offers low down payments—often as little as 3.5%—and flexible credit requirements, making homeownership more accessible. FHA loans can be used for purchasing or refinancing a home, and they typically have competitive interest rates with fixed or adjustable options. This program is ideal for buyers seeking affordable entry into the housing market with manageable terms and protections.