FHA home loans are mortgages that are insured by the FHA (Federal Housing Administration). They were started during the Great Depression of the 1930’s in an effort to provide lenders with sufficient insurance at a time when foreclosures and defaults rose rapidly. Some of the FHA programs were government subsidized, but the goal was to make them self-supporting, based on insurance premiums paid by borrowers.
Today, FHA loans are primarily for people who cannot afford a conventional down payment or do not qualify for PMI (Private Mortgage Insurance). In order to get one of these loans you need to go through a federally qualified FHA lender.