Most of us, at some point or another, need a loan for something. Loans can range from paying off other debts, purchasing a home, financing businesses, buying a car, funding education and more; A ton of private financial institutions exist simply to loan for these purposes. While most loans are privately given, a substantial portion of them is actually provided by the government, both directly and indirectly.
Getting approved for a private loan can take some work, but government loans are often more complicated and tend to have specific requirements that you’ll need to meet. The important thing is to be aware of government loans available, however, so you know what loan options are available to you. In this article, we’ll be discussing and exploring top government loans.
- FHA Loans - The most popular government housing loan is the Federal Housing Association loan, or FHA. FHA loans are common among homebuyers because they don’t require a high credit score and you are required to only make a down payment of 3.5%. When you apply for this type of loan, it will be indirectly government-backed, meaning you will still go through a financial institution or mortgage lender.
- VA Loans - VA loans are a great option for military veterans, service members, and their families. With these loans, you can get a low-interest rate and 100% financing, meaning no down payment is required.
- Home Improvement and Repair Loans - If you already own a home or are purchasing one, and it needs repair, you can seek an FHA 203(k) loan. With this loan type, you can seek funding for repairs needed in order to ensure your home is safe and clean for you and your family to reside in.
- PACE - When you are trying to upgrade your home with energy-efficient changes or additions, you can apply for a PACE loan through your local state government. This loan type can even help pay for sustainable landscaping for your home.
Unfortunately, right now there are no government personal loans available. If you need a loan in this category, it’s best to check with your local bank, credit union, or online lender. At this time, government loans tend to stay in the realm of education, business, and housing.