government-backed loans

Federally insured borrowing

Government-backed loans are loans guaranteed or insured by a government agency rather than a private lender.

If the borrower defaults, the government covers some or all of the loss, which allows lenders to offer more favorable terms—lower interest rates, smaller down payments, or approval for riskier borrowers.

In the U.S., FHA mortgages, VA home loans, and federal student loans are common examples: She qualified for a government-backed loan despite her limited credit history.

Related

VA loans · down payment assistance · exporters · FHA loans · farmers · small business loans · disaster relief · eligibility criteria · municipalities · Fannie Mae · veterans · Freddie Mac · housing market · Treasury Department · refinancing options · job creation · market stability · HUD

Opposites
funding source/guarantor

government-backed loansprivate loans

Non-federal borrowed funds

commercial loans · venture capital · payday loans · peer-to-peer lending · angel investment

financial instrument type

government-backed loansbootstrapping

Self-starting without external input

retained earnings · personal savings · gifts · grants

risk/security status

government-backed loansunsecured loans

Credit without collateral

subprime loans

Family

government, govern, governor, governed, governing, governance, governmental, governess, backed

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Rated G