Housing finance refers to the methods and systems that help individuals and families obtain funds to purchase or improve their homes. This can include various financial products like mortgages, which are loans specifically designed for buying real estate. Lenders, such as banks and credit unions, assess a borrower's creditworthiness to determine loan eligibility and interest rates. Additionally, housing finance can involve government programs that support homeownership, such as FHA loans or VA loans, which offer favorable terms for eligible buyers. These financial tools aim to make housing more accessible and affordable, promoting stability in communities and the economy.