Top 5 US Government Loan Programs 2025: Even though FHA house loans and student loans are well-known, there are a number of lesser-known programs that provide amazing opportunities to a variety of groups, such as small company owners, public employees, and rural homebuyers.
Top 5 US Government Loan Programs You Didn’t Know About
1. The Good Neighbor Next Door Program
Teachers, police officers, firefighters and rescue providers have an incredible opportunity to purchase real estate with a 50% discount on the Good Neighbor -Next -Door program. By encouraging civil servants in the municipalities they serve, the program is managed by the Ministry of Housing and Urban Development (HUD) and seeks to improve the community.
How It Operates?
Homes in certain revitalization areas are available for purchase by qualified buyers. They have to agree to stay on the property for a minimum of three years in exchange. In addition to offering substantial discounts, this program enhances neighbourhoods by drawing in residents who value the community.
How to Use It?
To see available properties and find out more about the application process, go to the HUD Good Neighbor website. Act quickly if you locate a home that piques your interest because listings are only available for seven days.
2. USDA Guaranteed Loan under Section 502
USDA Section 502 Guaranteed Loans that do not offer low interest rates and down payments were created to become a homeowner with low to moderate incomes in rural areas. The goal of this initiative is to promote housing property in rural and semi-rural areas.
Qualifications for Eligibility
- You must be a US citizen or a constant resident.
- The property must be located in a rural area that qualifies.
- Fulfill the USDA’s income standards.
How to Use It
Applications are sent through lenders who have been approved. To learn more and locate lenders and places that qualify, visit the USDA Loans website.
3. The SBA Microloan Initiative
Loans of up to $50,000 are available as part of the SBA program (SBA) for small businesses and select non-profit childcare facilities. These loans can be used for company supplies, inventory, operating capital and other essentials. Start-ups and small businesses looking for affordable funding solutions will find this program right for you.
Qualifications for Eligibility
- Must run a childcare facility that is either non-profit or a small company.
- Show that you can pay off the loan.
- Take advantage of the training courses that SBA lenders provide.
How to Use It?
Intermediaries approved by the SBA handle applications.
4. Advanced Technology Vehicles Manufacturing Loan Program
By fostering innovation in the automotive sector, this initiative will help the US produce cars and parts. Automakers can support this loan in financing the creation, development and manufacturing of the latest cars.
Qualifying Criteria
- Must produce automobiles or parts with advanced technology.
- Fulfill environmental and fuel efficiency requirements.
- Prove your technological know-how and financial stability.
How to Use It
You can find information about application requirements and required documentation on the DOE ATVM website.
5. TEACH (Teacher Education Assistance for College and Higher Education) Scholarship
TEACH Scholarship provide yearly amount up to $4,000 to students who teach themselves in low-income, high-disability neighbourhoods for at least 4 years. For those who work for teachers, this grant can support education expenses.
Qualifying Criteria
- Must be enrolled in a program that qualifies for a TEACH Grant.
- Decide to work in a field with a high need.
- Continue to meet the minimum GPA criterion.
How to Use It
Start by completing the FAFSA and talking to the school’s Financial Aid Bureau.