Loans are required for most very large purchases, such as a vehicle or a house.  In general, banks are the institutions you need to go to to obtain a loan.  Banks revolve around loaning money to people and charging interest for the loan.  For some people, it can be very hard to get a loan, though.  If you have bad credit or any other financial issue, it can be extremely difficult to find a bank that is willing to give you a reasonable loan.  Banks tend to give much higher interest rates to people with bad credit.  This means that you are being penalized even more for something that has probably already caused you trouble.  Luckily, there is a government institution, known as the FHA, that can help you obtain a loan, even if your credit is bad.  The home loans for people with bad credit that are backed by the FHA tend to be much better for the borrower.  The FHA merely insures the loans, so the banks that do the lending are not held accountable in the event of foreclosure.  This system is better for all parties involved.  The borrower gets a home loan, when they probably would not have, otherwise.  The deal is good for the banks, too, since they are not liable for the loan.  Plus, since the FHA provides insurance on large loans for the banks, the institution does not cost the taxpayers any money.  This makes it probably the most economically-efficient of all the government institutions.  The insurance pays for the institution itself, the banks are not at risk, and the borrower gets a home loan.  It is truly a very well-run system.  The FHA can get you home loans with bad credit, but they can also help you get a loan with good credit.  Since the FHA insures the banks, which allows them to offer loans for more reasonable rates, more and more people are consulting with the FHA.  By going through the FHA to get your loan, you will be protecting yourself from a variety of potential problems.  The FHA backed loans have very low down-payments.  Plus, they do not allow the banks to charge exorbitant interest rates.  Regardless of your credit, you may want to consult with one of the experts at the FHA.  They can help you figure out what kind of house you can afford and how you will pay it off over the years.  They can help you with a lot of the logistics of getting a home loan that you may have never considered before.  For example, you have to figure out how much you will be able to pay off each month.  If you can only afford to make a very small payment every month, you will need to plan accordingly, and choose a house that is not terribly expensive.  The FHA works with people to help them get home loans that they will realistically be able to pay off.  Because of this institution, bad credit home loans can actually be a legitimate means of acquiring your own home.