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TeachMeFinance.com - explain FHA FHA -- Federal Housing Administration; established in 1934 to advance homeownership opportunities for all Americans; assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults; this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages another definition... FHA -- see Federal Housing Administration. Federal Housing Administration (FHA) -- a government agency within the Department of Housing and Urban Development (HUD) that administers many programs including housing subsidies, mortgage insurance, and rental assistance. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.