In the United States, the Federal Housing Administration (FHA) provides housing mortgage loan
insurance to qualified applicants who get loans from certified lenders, guaranteeing the mortgage in
the event of a default by the Buyer. The FHA allows those who normally could not qualify for a
mortgage to qualify for one because the FHA will pay the mortgage in the event of a default. The FHA
helps those with poor credit history, those who cannot afford much of a down payment, and others
who for one reason or another are unlikely to obtain a mortgage from a regular mortgage broker. *In
Canada this is the Canada Mortgage and Housing Corporation (CMHC).