Federal Housing Administration (FHA) - An agency of the U.S. Department of Housing and Urban Development (HUD). They primarily insure residential mortgage loans made by private lenders. Borrowers pay the premiums for this government backed mortgage insurance. 

Borrowers with FHA insured loans can have a down payment of as little as 3% of the purchase price of their home. FHA's programs are designed to make home ownership more reachable by middle to lower income borrowers Maximum loan amounts are periodically adjusted and vary by region.