What does FHA stand for?

The correct answer that represents what FHA stands for is Federal Housing Administration. This organization is a significant part of the U.S. Department of Housing and Urban Development (HUD) and was created to assist in improving housing standards and conditions in urban areas, as well as ensuring that mortgage financing is widely available to homebuyers. The FHA plays a crucial role in the housing market by providing mortgage insurance on loans made by approved lenders to borrowers with low to moderate incomes.

The other options do not accurately reflect the official name of the agency. Federal Housing Authority and Federal Home Association are not legitimate acronyms associated with this governmental entity, while Federal Housing Alliance does not correspond to any recognized agency related to housing in the same way that the FHA does. Understanding the specific role of the Federal Housing Administration helps in grasping its importance in providing access to home loans and promoting affordable housing.