FHA loans are government-backed mortgages that offer low down payment options and more lenient credit score requirements. These loans are intended to help first-time homebuyers, low-income families, and individuals with less-than-perfect credit scores. FHA loans require a minimum down payment of 3.5% and allow credit scores as low as 580. They also offer lower interest rates and more flexible qualification criteria than conventional loans, making homeownership more accessible to those who might not otherwise qualify for a mortgage. However, FHA loans do require mortgage insurance premiums (MIP) which can increase the overall cost of the loan.