A government loan is a type of loan that is backed, insured, or guaranteed by a government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These loans are designed to support specific sectors or populations, such as homebuyers, small businesses, or students. Government loans often come with more favorable terms, including lower down payment requirements and relaxed credit score criteria, making them more accessible to borrowers who may not qualify for conventional loans. It's important to note that government loans often have specific eligibility requirements and may involve additional paperwork and processes compared to traditional loans.