Farmer's Home Administration, also known as FHA, is an agency under the US Department of Agriculture that helps to provide families with financing assistance to make home ownership possible for more people. The agency, created after the Great Depression, was first formed to make loans affordable to farmers and other potential home owners, who might not qualify under more traditional loan programs. The FHA insures loans against default so that lenders can relax requirements needed to qualify for a mortgage. FHA loans carry a monthly mortgage insurance premium to protect the lenders from foreclosure losses. FHA loans require only a small down payment of 3.5 percent, which is paid by the buyer. The down payment may be a gift from a family member. FHA requires buyers to have no major credit delinquencies. In addition to farms and single family homes, FHA loans are available for owner occupied multiple unit properties.