What federal agency administers the FHA loan program?

The Federal Housing Administration (FHA) is the agency that directly administers the FHA loan program. Established in 1934, the FHA was created to help improve housing standards and conditions, to provide an adequate home financing system through insurance of mortgage loans, and to stabilize the mortgage market.

While the FHA is indeed the core agency responsible for the loan program, it's important to recognize that the FHA operates under the umbrella of the Department of Housing and Urban Development (HUD), which oversees a variety of federal housing programs, including those run by the FHA. However, in strictly answering which agency administers the program specifically, the FHA is the responsible entity for the allocation of guidelines, processing, and management of FHA loans.

Understanding the structure of these agencies is crucial since HUD sets the policies for overall housing programs, while the FHA implements specific measures and services regarding mortgage availability and insurance. This distinction emphasizes the role of the FHA in providing support and protections specifically related to single-family and multifamily housing financing options.