FHA Loans are mortgage loans insured by the Federal Housing Administration, designed to cater to borrowers with lower credit scores or smaller down payments. These loans offer more flexible lending requirements, making them an attractive option for first-time homebuyers or those with less-than-perfect credit. FHA Loans typically require a lower down payment (as little as 3.5%) and have more lenient credit score requirements compared to conventional loans. However, they do come with the added cost of mortgage insurance premiums, which protect the lender in case of default.