FHA loan

Bank of America and Wells Fargo were among banks that tightened credit standards for mortgages insured by the Federal Housing Administration in a move that may put a crimp in the U.S. housing recovery by effectively eliminating 6.3 million people from the potential home buying pool.

With the economy stalled and the housing market still sluggish, no one is sure what it will take to get buyers into new homes. Obtaining an affordable loan -- any loan, in many cases -- seems insurmountable. But there is a way. Hello, FHA! These government-backed loans, which require smaller down...