Government-backed loans
Encyclopedia
A government-backed loan can simply be defined as a loan
subsidized by the government, which protects lenders against defaults on payments, thus making it a lot easier for lenders to offer potential borrowers lower interest rates. Its primary aim is to make home ownership affordable to lower income households and first-time buyers.
There are numerous types of government-backed loans which vary dependent on the county and status of the borrower. Arguably the most widely known type of government-backed loan is the Federal Housing Administration
FHA loan
which has been in existence since 1934.
Other types of government-backed loans include, but are not limited to, the following below:
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
subsidized by the government, which protects lenders against defaults on payments, thus making it a lot easier for lenders to offer potential borrowers lower interest rates. Its primary aim is to make home ownership affordable to lower income households and first-time buyers.
There are numerous types of government-backed loans which vary dependent on the county and status of the borrower. Arguably the most widely known type of government-backed loan is the Federal Housing Administration
Federal Housing Administration
The Federal Housing Administration is a United States government agency created as part of the National Housing Act of 1934. It insured loans made by banks and other private lenders for home building and home buying...
FHA loan
FHA loan
An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they...
which has been in existence since 1934.
Other types of government-backed loans include, but are not limited to, the following below:
- Teacher Next Door Program
- Good Neighbor Next Door
- VA loanVA loanA VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs . The loan may be issued by qualified lenders....
- HOPE VIHOPE VIHOPE VI is a plan by the United States Department of Housing and Urban Development. It is meant to revitalize the worst public housing projects in the United States into mixed-income developments. Its philosophy is largely based on New Urbanism and the concept of Defensible space.The program began...
- State of New York Mortgage AgencyState of New York Mortgage AgencyThe State of New York Mortgage Agency is a public authority created in 1970 by the state government of New York to provide affordable homeownership to low- and moderate-income New Yorkers. It offers affordably priced fixed-rate mortgages through several mortgage programs for eligible homebuyers...
– SONYMA - CT-FAMILIES
- The American Dream Downpayment Initiative - ADDI
External links
- "Government-backed loans" (MortgageLoan.com)
- "Federal Loans" (FederalGrants.com)
- "Office of Housing" (HUD.gov)