FHA loans are government-insured mortgages that help buyers with lower credit scores or limited savings qualify for homeownership, requiring as little as 3.5% down for credit scores of 580 or higher. They include mortgage insurance premiums, increasing overall costs. FHA loans have property and occupancy requirements, loan limits, and may be less suitable for buyers with strong credit or larger down payments. They offer easier qualification but higher long-term costs compared to conventional loans.