Since its creation in 1934, the Federal Housing Administration (FHA) has insured home loans so lenders are financially protected should you default on your mortgage payments. This makes it more attractive for lenders to issue mortgages — especially to first-time home buyers and low-to-moderate-income households, making homeownership possible for borrowers who may not otherwise qualify for a loan. Potential borrowers must understand these requirements to increase their chances of being approved for an FHA m ...