An FHA Loan is a mortgage insured by the Federal Housing Administration (FHA), designed to make homeownership more accessible, especially for first-time buyers and those with lower incomes or credit scores. Unlike conventional loans, FHA loans allow for down payments as low as 3.5% and accommodate borrowers with lower credit scores. This flexibility makes it easier for many individuals to enter the housing market. FHA loans are particularly advantageous for those who might struggle to save for larger down payments or do not meet the stringent criteria required by conventional mortgage options.