An FHA loan, backed by the Federal Housing Administration, is a type of mortgage designed to make homeownership more accessible, particularly for first-time buyers or those with less-than-perfect credit. One of the primary benefits of an FHA loan is the lower down payment requirement, which can be as little as 3.5% of the home’s purchase price, making it easier for buyers to enter the housing market. Additionally, FHA loans typically have more lenient credit score requirements compared to conventional loans, allowing individuals with lower credit scores to qualify. The program also offers competitive interest rates and allows for higher debt-to-income ratios, providing more flexibility for borrowers. With these advantages, FHA loans serve as an excellent option for many prospective homeowners seeking to overcome financial barriers.