In the process of applying for mortgages for their first property purchase, many new home buyers ask, "What are FHA loans? They are often provided by the government and have lenient credit requirements along with low down payment. Knowledge of what FHA loan is will be useful in determining whether or not an individual is eligible to apply for such a loan that enables him/her to meet the qualifications. Furthermore, there are questions about what is FHA and how does it assist people in purchasing a house."