Government-backed loan

{{Short description|Loans subsidized by governments}} {{Use American English|date = March 2019}} {{Use mdy dates|date = March 2019}}

A '''government-backed loan''' is a [[loan]] subsidized by the government, also known in the United States as a [[Federal Direct Student Loan Program|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 buyer]]s.

== United States == 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: * American Dream Downpayment Initiative - ADDI * Good Neighbor Next Door * [[HOPE VI]] * Teacher Next Door Program * [[VA loan]] * [[State of New York Mortgage Agency]] – SONYMA

==See also== * [[FHA insured loan]]

== External links == * [https://web.archive.org/web/20120226074614/http://www.hud.gov/offices/hsg/ Office of Housing]

[[Category:Loans]] [[Category:Government finances]]