Federal Housing Administration

**Our Role** The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development. We provide mortgage insurance on loans made by FHA-approved lenders. We insure mortgages on single family homes, multifamily properties, residential care facilities, and hospitals throughout the United States and its territories. **What We Do** FHA mortgage insurance protects lenders against losses. If a property owner defaults on their mortgage, we'll pay a claim to the lender for the unpaid principal balance. Because lenders take on less risk, they are able to offer more mortgages to homebuyers. To qualify for insurance, loans must meet certain requirements. **How We're Funded** FHA primarily operates from its self-generated income. We collect mortgage insurance premiums from borrowers via lenders. We use this income to operate our mortgage insurance programs for the benefit of homebuyers, renters, and communities.