What type of loan is insured by the Federal Housing Administration?

The type of loan that is insured by the Federal Housing Administration (FHA) is indeed the FHA loan. This government-backed loan program is specifically designed to help lower-income and first-time homebuyers qualify for a mortgage. The FHA insures these loans, which means that lenders are protected against losses in the event of borrower default. This insurance allows lenders to offer more favorable terms, such as lower down payment requirements and less stringent credit score criteria compared to conventional loans.

In contrast, a conventional loan does not have any government insurance or guarantees attached to it, while the VA loan, offered to eligible veterans and service members, is guaranteed by the Department of Veterans Affairs. A home equity loan typically involves borrowing against the equity of a borrower's home and is not connected to government insurance like FHA loans.