What is an FHA Loan? FHA insures this mortgage loan. This is typically a more available mortgage option for hopeful homebuyers. Loan size limits vary dependent upon your region. The Federal Housing Administration offers potential home buyers more access to mortgages. The FHA only requires a 3.5 percent down payment and a credit score of 580 before backing a loan. Additionally, the opportunity offered by the FHA affords a number of additional benefits that make borrowing more attractive.