One of the primary functions of the Federal Housing Administration (FHA) is to

While the FHA promotes affordable housing initiatives, it does not directly engage in the construction of low-income housing. Instead, it focuses on insuring loans and facilitating access to home financing, leaving the actual development of housing primarily to private entities and local governments.

The FHA does offer low down payment options, but it does not universally provide home loans with no down payments. FHA loans typically require a minimum down payment, which can be as low as 3.5%, but it is not accurate to say that the FHA exclusively makes loans without any down payment.

The FHA does not provide homeowner's insurance. Instead, it insures mortgage loans, which protects lenders in case of borrower default. Homeowner's insurance is a separate product typically purchased by homeowners to cover property damage and liabilities, not provided by the FHA.