Government Loans: Which One is Right for You?

Are you starting a small business or buying a new home? Or do you need money for college tuition? If so, you can apply for government loans online. However, which one is right for you? Let’s take a look.
Business Loans:
While there are many available at www.gov/loans, the most popular loan utilized by small businesses or start-up businesses is called the 7(a) loan, derived from section 7(a) of the Small Business Act. It was created to help for-profit businesses that are unable to obtain financial assistance from other resources. The Micro Loan Program also provides very small loans to start-up, new or growing small businesses. The Small Business Act makes funds available to non-profit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. Education Loans:
The Perkins Loan helps undergraduate students and graduate students meet the cost of education. A Perkins Loan must be repaid, beginning after a nine-month grace period when the student is no longer enrolled on a half-time basis. In order to qualify for this program, you must be a student who is pursuing a post-secondary educational degree or certificate.
Stafford Loans are available for undergraduate and graduate students. You can obtain a Stafford Loan from the U.S. Department of Education. You repay a Federal Direct Stafford Loan to the U.S. Department of Education. Or you can apply for a Stafford Loan through the Federal Family Education Loan Program, which can be obtained by a private lender. There are also Consolidation Loans that are available to most borrowers of Federal education loans. Most Federal student loans are eligible for consolidation, including subsidized and unsubsidized Direct and Federal Family Education (FFEL) Stafford Loans, Direct and FFEL PLUS Loans (parent loans), and Federal Perkins Loans. Private educational loans are not eligible.
Housing Loans:
http://www.gov.loans/ also offers housing loans, which assist individuals to buy a single family home. Although Housing and Urban Development (HUD) does not lend money directly to buyers to purchase a home, Federal Housing Administration-approved lenders can obtain loans through a number of FHA-insurance programs. In order to qualify for this benefit program, you must be a current or prospective homeowner who is refinancing an existing mortgage. With the current instability of sub-prime mortgages, and the number of foreclosures throughout the nation and abroad, it is prudent to either apply for a loan through the Federal Housing Administration or directly through your bank.
Veterans Loans:
Veterans who wish to buy a home can apply for the Veteran Loan, which guarantees a percentage of the loan. This helps the veteran obtain a no down payment mortgage at a competitive interest rate. For more information, check out http://www.gov.loans/.