Federal Housing Administration

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Federal Housing Administration and HUD Office of Housing

Seal of the U.S. Department of Housing and Urban Development
Agency overview
Formed	1934 (1934)
Jurisdiction	United States
Headquarters	Robert C. Weaver Federal Building Washington, D.C.
Agency executive	Julia Gordon, Assistant Secretary for Housing and Federal Housing Commissioner
Parent department	Department of Housing and Urban Development
Key document	National Housing Act of 1934
Website	www.hud.gov
Footnotes
Also known as the Office of Housing

The Federal Housing Administration (FHA), also known as the Office of Housing within the Department of Housing and Urban Development (HUD), is a United States government agency founded by President Franklin Delano Roosevelt, established in part by the National Housing Act of 1934. Its primary function is to provide insurance for mortgages originated by private lenders for various types of properties, including single-family homes, multifamily rental properties, hospitals, and residential care facilities. FHA mortgage insurance serves to safeguard these private lenders from financial losses. In the event that a property owner defaults on their mortgage, FHA steps in to compensate the lender for the outstanding principal balance.

Under this insurance arrangement, lenders assume a diminished level of risk, thereby allowing them to offer a larger number of mortgages. The primary mission of the Federal Housing Administration (FHA) is to facilitate access to reasonably priced mortgage financing, with a particular focus on individuals with low to moderate incomes and those embarking on their first home purchase. Furthermore, the FHA lends its support to the construction of both affordable and market-rate rental properties, along with the establishment of hospitals and residential care facilities, not only in communities throughout the United States but also in its territories.

It's important to distinguish the FHA from the Federal Housing Finance Agency (FHFA), which oversees government-sponsored enterprises. Presently, the FHA is under the leadership of Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon.^[1]