Today's buyer has a large selection of government real estate finance programs available to assist them with acquiring the financing necessary to purchase their dream home. There are also a number of government homeownership programs for homeowners who experience an unforeseen financial pitfall that leaves them unable to pay their mortgage any longer.

Check out the resources below for more information about government real estate finance programs. Types and styles are available to accommodate a wide range of individuals and their specific homeownership goals. Consider the following when looking for government real estate finance programs:

1. Take advantage of two government homebuying finance programs simultaneously by purchasing a HUD home that is eligible for financing with an FHA loan.

2. Turn to a government real estate finance program offered through Fannie Mae or Freddie Mac to prevent the foreclosure of your current home.

3. Determine if you qualify for a special government homebuyer program.

Action Steps
The best contacts and resources to help you get it done

Consider your options with government programs for real estate such as HUD/FHA

HUD homes are most often properties that have undergone foreclosure, and HUD has assumed ownership. FHA loans are insured by the federal government and cater to lower income families and individuals with a less than perfect credit rating. Both HUD homes and FHA-insured loans are attainable for the majority, because the eligibility requirements are less specific and rigid compared to some government real estate programs.

I recommend: The US Department of Housing and Urban Development's Federal Housing Administration (FHA) page offers federally insured loans with desirable interest rates and terms to protect the investment. FHA also has financing options available for home remodeling. FHA.com has information about purchasing, refinancing and offers articles and answers about FHA loans.

Look to a Fannie Mae or Freddie Mac government homeownership program for ways to avoid foreclosure

Fannie Mae is a secondary mortgage lender chartered by Congress, which finances many banks and brokers in order to ensure they are capable of underwriting loans to the general public. Freddie Mac is a Conservatorship and is also a secondary lender.

I recommend: Fannie Mae has many resources to help you avoid the foreclosure of your home like the HOPE NOW program, which has created a network of lenders, debt counselors and investors who are working with HUD to provide homeowners with free resources to prevent the foreclosure of their home. Freddie Mac also provides tools to try and stop more homes from being lost to foreclosure, such as the Making Home More Affordable plan which gives homeowners the opportunity to either refinance their existing mortgage or modify the terms in order to be able to stay in it.

Find out more about specialized government homebuyer programs

There are many other types of government programs for real estate investors with special eligibility criteria, ranging from economic injury disaster loans to farm ownership loans.

I recommend: Military.com has an abundant amount of helpful information to help you learn the facts about your VA loan options as a veteran. GovLoans.gov features loan details and eligibility requirements for Native Americans. FEMA is working with the Small Business Administration (SBA) to offer natural disaster relief loans and financial assistance.

Whether you need financial relief after a natural disaster or want to start a home-based business, you can find government real estate finance programs that will help you just about everywhere you look. The United States government literally makes available billions of dollars in government homebuyer programs and government programs for real estate investors each year. There’s no shortage of information about government real estate financing programs, whether you’re accessing a website or contacting a federal real estate government program’s office.

The government real estate financing programs come in many different sizes and shapes. Starting as low as $10,000 or going as high as one million, government real estate financing is available to individuals who’ve never owned their own home, to veterans of war that either want to buy a home or remodel one they already own, or to women who think they might want to work from home. As you search for the best government real estate finance programs, consider all the choices you have:

1. Play it safe with a nationally-recognized government homebuyer program.

2. Choose government real estate financing for women or veterans.

3. Find a government real estate program to fund your small business venture.

Action Steps
The best contacts and resources to help you get it done

Locate government homebuying finance programs

For decades now, the United States government has sought to provide financial assistance that will help its citizens realize their dreams of buying a home or investing in real estate.

I recommend: Fannie Mae began even before the Second World War as a federally-chartered company that would ensure the availability of government funds for purchasing homes. Since then, Fannie Mae has served the American public by helping citizens purchase homes at affordable prices. Home Buyer Funds website allows you to find programs offering home improvement and home-buying help in your state. You can even apply for the government funds online.

Find out if you're eligible for VA loans or Women's Grants government real estate programs

The federal government reserves billions of dollars in real estate grants for veterans of war and women.

I recommend: Through its home loan guaranty services, The United States Department of Veterans Affairs, has assisted United States veterans of war secure government loans for buying homes. You can start the process by completing a Request for Determination of Eligibility that is available on the Department’s website and then mailing it to the VA Loan’s Eligibility Center along with proof that you performed military service. USA Government Grants helps more than half a million women entrepreneurs each year secure government loans to business ventures such as starting a business in your home or working from your home, getting into the real estate industry or developing a new product.

Get government real estate financing for small business

There's no denying that starting and operating even a small business requires a wide array of resources, not the least of which is the capital necessary to launch the project or to venture into other areas.

I recommend: Complete the online application for a small business government grant on the website for Grants Now USA. This company provides numerous grants and other services to first-time and experienced small business entrepreneurs. The United States Small Business Administration will put you in touch with federal programs that offer financial assistance for small business owners. Even though the Administration does not provide grants to start your small business, it will locate grants for you and otherwise provide surety bonds, loans and capital for special projects.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Buying a home or investing in real estate can be an intimidating process, even for those with some experience. Take advantage of the services each of these government real estate programs provides to help you cut through the red tape.

The idea of working with government real estate finance programs can be a bit overwhelming. With so many different types of government real estate financing options, it is often difficult to discern which program will best serve your individual needs and goals.

If you would like to know more about what you can expect when working with government real estate finance programs, check out the following resources:

1. Discover all the government real estate programs and opportunities available to help you acquire necessary financing and meet your goals.

2. Learn about the standard application process and qualification restrictions associated with government programs for real estate.

3. Know the loan commitment terms, as well as minimum and maximum financing amounts for each government real estate finance program available.

Action Steps
The best contacts and resources to help you get it done

Find the government real estate financing programs available to you

There are a number of existing government programs for real estate investors that offer both residential and commercial financing opportunities. You can find anything from down payment assistance on a home purchase to a small business loan to start a company.

I recommend: GovLoans.gov lists all the necessary information about the many government real estate financing options, including agriculture, business, disaster relief, home and veterans loans. USA.gov provides important facts about a variety of government homebuying finance programs, as well as many other grants and benefits.

Explore the application process and eligibility requirements for government homebuyer programs

The application process varies slightly with each program. However, you should be prepared to provide documentation which proves your income amount and be ready to have your credit report reviewed. Eligibility requirements are program specific.

I recommend: U.S. Department of Housing and Urban Development (HUD) features an interactive map which allows you to find an approved housing counseling agency in your area. A housing counseling agency can provide you with detailed information about government homeownership programs and the approval process for each available program. These services are often offered to the public for free. FHA Info lists examples of some of the documentation typically required in order to complete the application process and qualify for government real estate programs.

Understand the terms and obligations of loans and government grants for real estate investing

You need to know all of the financing requirements for each program to help you determine the best option. Pay attention to loan commitment terms and restrictions on the amount you may borrow or how it can be used. You also need to be aware of potential individual obligations, such as being required to complete an education course for homebuyers as a condition of the financing approval.

I recommend: AARP offers a guide with a lot of valuable and comprehensive information about home loans. The guide explains the loan process and features advice about how to compare loan terms. HomebuyerFunds.com features an approved course that is available free of charge.

If you need real estate assistance, you may qualify for one of thousands of government real estate finance programs. Options vary from those first-time homebuyers programs to a veteran needing down-payment assistance or a single mother starting her own business. Wading through the requirements and all of the information can seem tedious and complex. And not just any loan officer can assist you with a government real estate finance program. Learn these key terms to help get you on your way to securing a government loan.

Action Steps
The best contacts and resources to help you get it done

Loan guaranty

Under legal contract, a loan guaranty ensures payment by the guarantor if the borrower defaults on the loan. Participating in a loan guaranty program ensures that a company will approve your loan.

I recommend: The U.S. Small Business Administration uses a Basic 7(a) loan program with guaranteed service.

Surety bonds

A surety bond is a bond issued to an entity, guaranteeing the fulfillment of financial obligation to a third party. The third party can recover losses through the bond, if the entity defaults.

I recommend: For an extra definition and additional information on surety bonds, check out the Surety Information Office.

Loan modification

If a borrower is facing a long-term inability to pay back the loan, the lender may make a loan modification. A loan modification can involve decreasing the interest rate, extending the loan's term period or the issuance of a different type of loan. Lenders are usually willing to modify the loan instead of going into default.

I recommend: Review the Federal Deposit Insurance Corporation's loan modification program.

Refinance

The most common example of a loan modification is the process of refinancing a mortgage. Refinancing is basically using the same property and paying off an existing loan with a new loan, usually with different terms. To make it worthwhile, the savings in interest must outweigh refinancing fees. Reasons to refinance include reducing the term period, gaining a lower interest rate or switching between an adjustable to a fixed rate or vice versa.

I recommend: Find the latest programs dealing with Federal Homeowner Assistance through Government Refinance Assistance for mortgage relief.

Certificate of eligibility

A certificate of eligibility is a document that a government agency issues to recognize the individual as eligible for government assistance. The Veterans Administration uses this term in certifying a veteran's application for a loan.

I recommend: Find out more about the VA’s loan program and the process through Direct VA Loans. You can even apply online.

Full documentation

When a loan program requires full documentation, it means you must show your income through W-2, 1099 forms or your tax return. Some lenders using full doc loans require two years' worth of information. Other lenders definition of full doc may vary depending on the loan type.

I recommend: Get a more thorough explanation of full doc loans and comparison to other documentation for different loans through Mortgage-X.com. You can also review a loan checklist.