An FHA home loan is a type of mortgage that is backed by the Federal Housing Administration (FHA) to provide protection against default. It is available for both single-family and multi-family homes, and enables banks to lend money without being subjected to significant risks or capital requirements. The FHA does not issue loans or establish interest rates; it simply ensures that lenders are protected against defaults. FHA loans are particularly beneficial for individuals who may not be eligible for a traditional mortgage, such as first-time homebuyers. They offer low minimum down payments, reasonable credit expectations, and flexible income requirements. This means that more people can secure a loan and achieve their dream of owning a home.