Government loans seem to have earned a nasty reputation among today’s borrowers, but, as usual, things may not be as they appear. Federal and state financing programs exist for reason, and it’s not to trap you into a loan you can’t repay or to enable people without money to live off of the system for years. In fact, it’s probably time to take a second look at your government financing options by checking out some of these benefits of government loans:
Some people think of government money as a “handout.” They believe that the government will award money for anything to anyone who asks. This simply isn’t the case. There are, however, many programs in place to offer financial assistance to citizens in need. This can mean funding loans to students for college, helping first-time buyers finance their homes, or providing grants to qualified artists.
The inherent idea behind government loans is that this money is being afforded at better rates and in more favorable terms than would otherwise be possible. This makes government loans a better deal for most people than they would be able to obtain from a different source of lending. Better interest rates and better payback plans make for a more relaxed financial commitment for the borrowers.
If a government loan has been recommended for you, then you deserve to take advantage of what’s available. The screening process won’t approve candidates that don’t qualify to receive the assistance. Government loans eliminate the risk to the borrower because all the money is insured by federal and state agencies, and therefore qualified borrowers are generally approved for better rates than would be possible in other situations.
Still have questions about government loans or wondering whether one is right for you? Call an expert at 803-765-1680 and toll-free 800-854-9484.