Given the tough economic situation, buying a home is becoming a distant dream for most people. That is where the home equity loans .

For most people, even if they put together some money and approach the banks and the lenders, the stricter requirements that they are imposing post the economic debacle can be pretty exasperating. And, it can be tough for even those with decent credit scores. So, what about those who have bad credit? Should they forget their aspirations in life? Should they give up the ambition of buying a home?

It should not be so. That is where the home mortgage and especially the fha home loans come into the picture. The FHA is a federally assisted mortgage loan. It is also insured by the Federal Housing Administration. These loans are typically made available for the benefit of the mid to lower income Americans. The FHA loans have a very small down payments. These down payments may be as low as 3.5% of the total loan amount. For example, if the cost of the home is $100,000, the down payment would be just $3500.

This program helps people who have borrowed to refinance and hence avoid foreclosure. When you are in this program, the lender will not automatically disqualify you if you are late in making your payments. You will get a second mortgage from your new lender and this will typically make up the difference between the value of you property and what you owe. Through this FHA Secure loan, you can also expect to pay lower monthly payments.