Federal Housing Administration

An agency of the U.S. Department of Housing and Urban Development that insures home mortgage loans to people with low income or poor credit. The insurance allows private-sector banks and savings and loans to underwrite a mortgage in circumstances that would otherwise disqualify potential home buyers. The FHA also provides low-income housing through public-
housing developments and manages the Section 8 rental program, which allows renters to locate and rent apartments using vouchers issued by the FHA. Section 8 refers to the section of the law that created the rental program.