Government-backed loan
From Wikipedia, the free 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:
- Teacher Next Door Program
- Good Neighbor Next Door
- VA loan
- HOPE VI
- State of New York Mortgage Agency – SONYMA
- CT-FAMILIES
- The American Dream Downpayment Initiative - ADDI
External links
- "Office of Housing" (HUD.gov)
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