Government-backed loan

A government-backed loan is a loan subsidized by the government, also known as a Federal Direct Loan, 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 country and status of the borrower. Arguably, the most widely known type of government-backed loan is the US Federal Housing Administration FHA loan, in existence since 1934.
Other types of government-backed loans include the following:
Teacher Next Door Program
American Dream Downpayment Initiative - ADDI
State of New York Mortgage Agency – SONYMA
Good Neighbor Next Door
VA loan


In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient
2010, the Federal Direct Loan Program is the sole government - backed loan program in the United States. Guaranteed loans - loans originated and funded by
on their loan repayments. The term can be used to refer to a government to assume a private debt obligation if the borrower defaults. Most loan guarantee
A student loan is a type of loan designed to help students pay for post - secondary education and the associated fees, such as tuition, books and supplies
loan insurance, mortgage - backed securities, housing policy and programs, and housing research to Canadians. It was created by the federal government in
A mortgage - backed security MBS is a type of asset - backed security an instrument which is secured by a mortgage or collection of mortgages. The mortgages
amendments and are therefore backed by the full faith of the United States Government Can be consolidated through the federal student loan consolidation program
payments to investors holding mortgage - backed securities or other types of instruments backed by pools of mortgage loans and remitting fees to mortgage guarantors
insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA - approved lender. FHA insured loans are
An asset - backed security ABS is a security whose income payments and hence value are derived from and collateralized or backed by a specified pool