FHA (Federal Housing Administration) is a division of the Department of Housing and Urban Development.
FHA does not lend money. FHAs main activity is to promote home ownership by encouraging lenders to offer mortgage loans with minimal down payments. While FHA limits the maximum mortgage amount, there are no sales price or income limits.
The most popular FHA mortgages are fixed rate, 30 year loans although FHA adjustable rate loans are available.
Generally speaking, if you are making a downpayment of 10% or more, a conventional loan will be more advantageous than a FHA loan. If you are making less than 10% downpayment then a careful comparison between FHA and a conventional loan is necessary to determine which loan is better for your circumstances.