Government Loans

Government loans consist of loans that are in some way guaranteed or purchased by government owned corporations or organizations. For instance, GNMA (Government National Mortgage Association) assists in the financing of urban renewal and housing projects by providing below-market rates to low income families. GNMA guarantees the payment of principal and interest on FHA and VA mortgages through its mortgage-backed securities program. It operates under the Department of Housing and Urban Development (HUD).

TIP: Think about your purchases. If you are not able to afford the purchase now, chances are you won't be able to afford it in a month when the credit card bill comes in!