An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), which is a government agency within the Department of Housing and Urban Development (HUD). FHA loans are designed to help more borrowers become homeowners. The requirements for an FHA loan are typically more lenient (from an income, asset, and credit standpoint) compared to other loans (like conventional or Jumbo). While you don't need to be a first time homebuyer, many first time buyers will use FHA as their first loan with their lower down payment and credit requirements.