Government loans – Real Estate
there is mortgage financing available to buyers and sellers and builders through the Federal Mortgage Insurance Programs. The US goverment provides these insurance and lending programs and will help an investors buy and sell properties. These programs can vary tremendously and generally available in every state. They help buyers who do not have the larger down payment required for more conventional loans. Also these loan programs aid sellers who may not be able to sell their properties were it not for the easily available financing
The VA and FHA loan programs are for single family home buyers. However government loan programs are wide reaching and take into account a substantial amount of loans for many different kinds of residential and commercial ventures.
There are two factors of each loan program: (1) How it will help you to buy a given property, and (2) how you can use that technique to sell a property you own.
The availability of these programs is often determined by the areas needs and the amount of money that has been allocated to that specific area of loan assistance. For example, there are loan programs that are designed to assist in the construction of low cost housing for the poor and elderly.
Government Programs Provide Insurance Not Loans
The first thing to keep in mind about government loans is that in most instances the government does not make the loan. Instead the goverment insures a portion of the loan, thereby reducing the risk to the lender who actually provides the funds. This insurance then makes more money available from the lenders for these programs because the loans ae more secure than ininsured loans in the same cateogry.
Loans that are insured by the government are obtained from most institutional lenders such as commercial banks, and savings and loans. These loans are frequently sold to major investors such as insurance companies, pension funds, mutual funds and also back through government securities funds, which can hold large blocks of these mortgages and sell shares to investors.
In addition, since such loans are less risky, the lender is often willing to increase the size of the loan. Some government loans provide 100% of the funds needed for the buyer to acquire the property. In turn, this increases the nunber of read and willing buyers, which enables many real estate developers to find a bigger market for their properties. A buyer can also benefit
