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: If you do fall behind on your monthly payments, contact your creditors and explain the situation to them, they may be willing to work out a payment plan for you. Consider adding a note to your credit report describing your hardship. Contact the credit reporting agencies to do this.