Wednesday, October 2, 2019

Government Loan Programs

Government loans comes in various forms. These loans are helpful for education, housing, business and even healthcare.

Below are some information about common government loans to help you have an understanding about them.

- Student Loan Programs
This loan is one of the most popular type of government loan. Some of the most used student loans are:

* Parent PLUS Loans: This loan is for the parents of the students. The loan has to be paid while the student is still studying.

* Direct PLUS Loans: This loan is based on credit score and it can be accessed either by the student or the parent. It can be payed back after the student is done with studies.

* Stafford Loans: Only qualified students are eligible to this loan. The student does not have to pay back the koan until after graduation.

- Business Loan Programs
The government has set up plans of loans to assist the growth of small businesses. One of these loan programs is the SBA7, which allows the business to borrow up to $2 million. But to access these loans, you need a personal guarantee to keep you in check.

- Housing Loan Programs
Another popular loan is housing loans. Some types include:

* VA Loans: VA loans are for military veterans and it has a low interest rate with no down payment for mortgage.

* Energy Efficiency Loans: this loan is useful for when you want to upgrade your house to be more energy efficient.

* USDA Loans: This loan helps qualified persons to purchase homes in less populated areas. It checks credit scores and income rate to determine qualified applicants. Though, the purchase of the house is restricted to USDA qualified areas.

You can also check into private personal loans. Private loans help increase your credit score.

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