Federal Housing Administration

The Federal Housing Administration is a subsidiary agency of the U.S. Department of Housing and Urban Development, the funds for construction and acquisition provides. Introduced as part of the New Deal in the 1934 program is to enable as well as lower-income people to own their own house.

The funds will be distributed in most cases as a comparatively cheaper credit (FHA loan) or as direct support payment. The loans are characterized by the fact that they have lower interest rates than would be on the open capital market. If a potential home builders qualify for an FHA loan, it also credits may be granted, or that would not get on far less favorable terms due to excessive credit risk on the capital market.

It developed around the FHA around several companies founded by the U.S. government, acting in the environment of the FHA - measures on the capital market and thus improve the financial situation of the FHA to Fannie Mae, Freddie Mac and Ginnie Mae and the FHL banks.