Uninsurable properties are those that do not meet the US Federal Housing Administration’s (FHA) Minimum Property Requirements or Minimum Property Standards hence are not eligible for FHA insurance. The FHA is the department of the US Department of Housing and Urban Development that provides insurance on mortgages extended by approved lenders. It collects mortgage insurance premiums from borrowers via lenders. If a homeowner defaults on their mortgage, the FHA pays a claim to the lender for the unpaid principal balance. By lowering lenders’ risk exposure, lenders are willing to extend more mortgages.