# Government-backed loan

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Loans subsidized by governments

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A **government-backed loan** is a [loan](/source/Loan) subsidized by the government, also known in the United States as a [Federal Direct Loan](/source/Federal_Direct_Student_Loan_Program), 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](/source/First-time_buyer).

## 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](/source/Federal_Housing_Administration) [FHA loan](/source/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](/source/HOPE_VI)

- Teacher Next Door Program

- [VA loan](/source/VA_loan)

- [State of New York Mortgage Agency](/source/State_of_New_York_Mortgage_Agency) – SONYMA

## See also

- [FHA insured loan](/source/FHA_insured_loan)

## External links

- [Office of Housing](https://web.archive.org/web/20120226074614/http://www.hud.gov/offices/hsg/)

Authority control databases National United States Israel Other Yale LUX

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