text: FHA stands for Federal Housing Administration. If you are talking about an FHA loan it is a mortgage that has a guarantee by the government that if you default the bank will still get it's money from the governmenr. this allows a person to put down less of a downpayment (3% compared to 20% normal) with little to no credit. this also has provisions that allow the seller to pay all closing costs and using a gift program even pay the Downpayment for the buyer. if you need more info, Email me.