An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA). This means that the federal government provides insurance for loans issued by FHA-approved lenders, reducing their risk of loss if the borrower defaults on mortgage payments.

The FHA program was established in response to the wave of foreclosures and defaults in the 1930s. It aims to provide mortgage lenders with sufficient insurance and to stimulate the housing market by making loans more accessible and affordable.