An FHA insured loan is a Federal Housing Administration Mortgage. This loan program was created to make home ownership easier to obtain. The U.S. Department of Housing and Urban Development (HUD) administers the program. The HUD works with FHA lenders to make these loans available with low interest rates.
Here is how you know if this is the right option for you:
Your home equity or down payment is less than 20%.
You need less-stringent qualification and credit requirements.
You want to refinance to a lower interest rate.