An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. Because this type of loan is more geared towards new house owners rather than real-estate investors, FHA loans are different from conventional loan in the sense that the house must be owner occupant for at least a year.^[1] Since loans with lower down-payments usually involve more risk to the lender, the home-buyer must pay a two-part mortgage insurance which involves a one-time bulk payment in addition to a monthly payment to compensate for the increased risk.