An FHA loan is a mortgage that the Federal Housing Administration issues. They are helpful with buyers who are more limited with their savings and with people who have damaged credit scores. A damaged credit score will be lower than expected, and as such, it is harder to receive a loan in most cases. However, with an FHA loan, you have help. These loans are popular among first-time homebuyers, which is one of the reasons that they have gained popularity in the past decade.