FHA stands for Federal Housing Administration. It is a US Government department that was created during the Great Depression to help Lenders remain competitive to lower income Americans during the bad times. Today, Lenders have chosen to force PMI fees on loans rather than go with the government programs. PMI is private mortgage insurance, and is often required for mortgage loans. Today the FHA primarily helps people who cannot qualify for PMI due to health reasons or other reasons and people who cannot come up with a traditional down payment for a home. FHA programs can help you find a loan while only putting 3% down.
The FHA also helps seniors pull cash out of their equity once they are 62 years old or older. This is commonly called a “reverse mortgage” in the US. Rather than making payments and reducing your principal balance, you receive payments and establish a balance. You need to have a very low balance on your home, and can the AARP to see if you qualify for this federally-insured program.