For those wanting to buy a home, finding lending can be tough. These days, private lenders are very tight with their purse-strings and are reluctant to lend at rates even remotely approaching pre-2006 levels. This can easily leave you in a bind as you try to find some way to purchase a home, be it a traditional home or a foreclosure.

Fortunately, the federal government has several avenues that you can take to obtain a loan from a private lender. Note that the federal government is not in the business of issuing primary loans. It does, however, guarantee loans issued by private lenders, which basically helps to make it far easier for you to obtain a private loan if you qualify for the federal program.

Types of Government Home Loans Available

There is a myriad of government home loans available to you, both at the state and federal level. State programs vary, so here we will discuss the federal options that you may qualify for when purchasing a new home.

Basic Federal Housing Administration (FHA) Insured Home Mortgage

This mortgage loan, sponsored by the Department of Housing and Urban Development (HUD), helps families purchase a single home for residency. You can apply through FHA-certified lenders, which involves almost all major lenders and most community lenders. First-time homebuyers can obtain an FHA loan with a down payment as low as 3.5% and receive up to 6% toward closing costs for the home loan.

Department of Veterans Affairs Mortgage Loan (VA Loan)

The VA loan is offered to eligible veterans and spouses and allows these individuals to purchase a home up to a certain limit with 0% down and a small funding fee of 0 to 3.15% of the loan amount. This means that qualified veterans could potentially buy a home without paying a down payment or closing costs.

U.S. Department of Agriculture Section 502 Loan

A Section 502 loan is a direct loan for low-income individuals buy homes in rural areas in the U.S. (as defined by the USDA). Applicants generally need to have no greater than 80% of the area median income (AMI) for the county in which they live. Those who have up to 115% of the AMI can qualify for a guaranteed home loan that is created with a private lender.

Indian Home Loan Guarantee

For those individuals who are of American Indian or Alaska Native descent, HUD offers a Section 184 home mortgage loan for those residing on or off of tribally designated housing entities, tribes, villages, and other lands.

Incentives for Pursuing Government Loans

One of the main incentives for obtaining a government home loan for your mortgage is the prospect of actually being able to buy a home, versus being declined by a private lender for a variety of reasons. Many people are ineligible without these home loan guarantees because they do not make enough money, or can’t put down a large down payment, or have poor credit or other negative circumstances. Since lending is tight, private lenders need some kind of reassurance that can only be provided by the government in most cases.

Another incentive is the prospect of obtaining a home loan with a very low or non-existent down payment. Typically, lenders like to see 10-20% of the loan amount paid down at the beginning, with 20% quickly becoming the norm as it once was. Not many people have 20% of a home loan saved up. With an FHA loan, for example, you can buy a home with just 3.5% down. A VA loan could potentially give you a 0% down payment.

Additionally, you can use government home loans to purchase a variety of homes that otherwise you would not be able to buy, including foreclosed properties. The allure of these properties – steep price discounts and widespread availability – means that they are affordable. But, private lenders do not always want you to buy a home foreclosure. Getting government guarantee for a loan could enable you to go to a foreclosure listing service, like ForeclosureDeals.com, and find a cheap home for sale.

Finally, you can use government funds to rehabilitate a fixer upper home, or even to rebuild a home that has been destroyed by a natural disaster. Did you know, for example, that the Section 203(k) program administered by HUD will give you money to not only buy a home, but to also rehabilitate it? It’s true – and that is something useful for homebuyers and investors alike.

Qualifying for These Government Loans

Qualifying for a federal loan involves more paperwork than a conventional, private home loan, but the benefits are worth it. You will need to provide, at a minimum:

- Proof of income for you and your co-signers, typically in gross monthly income format

- Addresses for your past and present places of residence (last two years)

- Social Security numbers

- Names and locations of your past employers (last two years)

- Financial info for your current checking and savings loans

- Financial info for any assets you have (stocks, bonds, real estate, etc.)

- Approximate value of your personal property

- Check stubs and W-2 forms (last two years)

- Info for any other current loans or debts

For VA loans, applicants will need to provide two things:

- Certificate of Eligibility (obtained from the Department of Veterans Affairs from their website)

- DD-214 (the official discharge paperwork from the military)

For additional requirements, you will need to talk to the appropriate loan official or representative for the specific loan you desire.

Quick Steps to Obtaining Government Loans

If you want to try for a government home loan to purchase a property, you are in luck. The federal government has made the process easier over the last few years as a way to give people an incentive to buy homes.

One of the best ways to get a great start is to assemble your paperwork completely and thoroughly. Take time to collect a total package, like the one outlined above. Then, do your research on the loan itself. What are the requirements? What are the loan limits? How much is a down payment? What specific things could disqualify you?

Next, make sure you contact the right lender. Not every lender is qualified to originate an FHA loan, for example. Use an online search to find an FHA-certified home loan originator. It further increases your chances if the lender manually underwrites its own loans, as opposed to having them automatically underwritten. That means the lender has a bit more discretion (or “wiggle room”) in who qualifies, and can work with you to get a loan accomplished.

Also, consider multiple lenders and shop around. Even if they are offering the same type of government loan, they could still offer various incentives that differ.

Finally, take some time to repair and boost your credit score if it is low. Those with scores below 500 do not qualify for FHA loans, and you really should have at least a 580 score. The higher, the better. Those who have at least a 620 score stand a much better chance of obtaining a government home loan than those with sub-par scores. Talk to a credit counselor. Pay off past debts, consolidate debt, and take on a second job if needed to boost your income. Sometimes, waiting a few months to boost your score is a great idea.

Government home loans are out there for the taking. With this guide, you hopefully will be one step closer to obtaining one and buying a home of your own.

It is not a secret that the United States is currently on rocky financial grounds with a very high unemployment rate, low home prices, and low interest rates. However, where do we currently stand on these matters and how does it relate to the real estate market?

The United States Department of Labor released a report today that indicates that the unemployment rate remains at 9.1% and shows a complete lack of job growth throughout August. In fact, these numbers are staggeringly low and have not been seen since this time last year.

According to a recent survey, approximately ¾ of the unemployed have been unemployed for over 6 months, with ½ of them being unable to find work for over 2 years. Even those that are still employed are cutting back on many aspects of life to make up for the rising cost of healthcare due to ridiculously high health insurance rates.

As a result of high unemployment rates, consumers are showing a complete lack of confidence that is further deflating our economy. Plus, foreclosures are continuing to occur as homeowners are simply unable to find jobs that allow them to pay their mortgage payments.

Fortunately, President Obama plans to meet with Congress in the very near future to stimulate economic growth by finding ways to add jobs across the country.

But where exactly does all of this leave the real estate market? A prime investment opportunity!

It is essential to note that there are incredible investment opportunities throughout the real estate market and across the country. With foreclosure auctions, short sales, and bank-owned homes being sold at ridiculously low prices—the investment potential for real estate is unmatched. With the current real estate market, you can obtain incredible bargains on homes that were two to three times as much in 2006.

But what, exactly, should you do with these investment properties? Rent them out of course!

Obviously the real estate market will pick back up in the near future allowing you to return to your real estate flipping techniques; however, in the mean time you can rent out these properties and receive monthly income that will more than make up for mortgage (if you even have a mortgage payment with these great deals).

As the job market starts to return to normal these great investment opportunities will become harder to find. If you want to invest in real estate now is the time! Take advantage of the unstable United States economy and increase your potential earnings for your future.

The federal government’s forays into the real estate market have met with mixed results. Loan modification programs that cost billions haven’t had the impact many expected, and the (justified) investigation of fraudulent foreclosure practices with several big-name lenders has run into quicksand.

Then again, the federal government scored a home run with its first-time homebuyer’s tax credit in 2010 that led to a spike in new and existing home sales and temporarily propped up the housing market, so maybe a new venture – one involving mortgage loan refinancing – is a good idea after all.

According to news released today, the federal government is considering a plan to refinance mortgages at today’s lower rates – around 4% – through Fannie Mae and Freddie Mac, thereby potentially saving millions of Americans a lot of money on their home loans.

This could have a stimulating effect on the economy because lower interest rates equal lower monthly payments – which equals more money in the pockets of Americans to save or, more likely, spend.

Of course, such a plan, if fully implemented, would likely cost an obscene amount of money – which might not fly if the deficit-obsessed Congress has anything to say about it. The inevitable conflict over spending could be postponed if the administration uses funds that have already been appropriated; otherwise, any new appropriations for the program would likely run into a massive roadblock with the Republican-dominated House of Representatives.

This plan is likely part of a larger plan to stimulate the economy and spur job growth, and might be a key component of Obama’s much-speculated jobs plan that he plans to unveil in September.

What impact would this have on the market, and how are investors, homebuyers, and homeowners impacted? In theory, homeowners would benefit the most because they would directly save money on their mortgages that were taken out when the interest rate was much higher. Mortgages that date from 2005 at the latest would particularly be impacted, but even relatively-new mortgages would benefit and save money – provided there is no means-based testing of eligibility for the program.

Investors and homebuyers could also benefit, though, because one perceived benefit – stability – would help the real estate market ultimately recover. This means higher home values – which means more profit for investors and homebuyers who lock in their upside potential by buying relatively soon.

In the end, this plan is mostly built on educated speculation and is not a sure thing. With that being said, it is exciting to see what comes of it – and how the real estate market will respond if it does indeed come into play.

Foreclosed homes in Denver dominated housing sales during the first three months of 2011. However, sales of high-end dwellings are also showing signs of improving, with March 2011 sales climbing from the previous month and from one year ago. A total of 36 housing units priced at least $1 million were sold in the area during the month of March, with three of the properties accounted for by condominiums.

The total represented a jump of 22% compared with February 2011 and also climbed by 14% when compared with March of last year. According to realtors, foreclosed homes in Colorado and luxury dwellings have enjoyed healthy sales records during the start of 2011. They reveal that the lowest and highest ends of the market are the ones showing improvements in terms of sales, with the middle market, which is often associated with traditional and live-in buyers, continuing to show signs of a slump. The trend is not unique to Colorado, analysts have stated, with the same buying trends seen in various markets of the U.S.

Although distressed properties and government tax foreclosures are causing prices of homes to decline in most areas of the state, realtors claimed that increased sales in the higher-end of the housing market has somehow helped alleviate the impact of cheap properties on residential prices. The lowest priced luxury home sold during the month was worth $1 million, while the most expensive was worth $2.6 million.

Sales of home foreclosures and luxury dwellings were spread out among the various counties of the metropolitan area during the month. For luxury residences, 14 were sold in Denver in March, while 10 were purchased in Arapahoe. Meanwhile, Boulder sold eight units, while Douglas and Jefferson both sold two. With interest rates remaining at record lows, realtors expect sales of more expensive dwellings to remain steady for the most part of 2011.

Market analysts expect bank foreclosed houses and government tax foreclosures will continue to account for a significant percentage of home sales in Denver in the next months. But, they also believe that a lot of move-up buyers will take advantage of the lower prices of high-end homes and sales will continue to rise.

Foreclosed homes in Grand Rapids  and in other metro areas of Michigan have been blamed for the decline in property values in the region. To prevent further loss of home values, Grand Rapids has recommended charging owners of empty properties with $45 and asking them to provide contact information. Data showed that, since 2004, one household out of every seven housing units in the area has been under foreclosure.

The recommendation to assess fees and require contact information was part of a concerted effort to hold owners of foreclosed homes in Michigan responsible for their properties. The Grand Rapids coalition that formulated the plan is comprised of housing agencies, community advocates and neighborhood associations aiming to protect neighborhoods from the impact of abandoned properties.

Aside from requiring owners of bank foreclosed homes and government tax foreclosure properties to provide local contact info, the plan of the coalition, named Grand Rapids Area Coalition to End Homelessness, also includes charging a yearly fee of $45 for each parcel of property, posting the contact information on the door of the property and putting up a no-trespassing order once the property has been registered. The fee, the coalition explains, can be used to pay full time workers.

Officials from the coalition also explained that the rules that will be imposed on homes foreclosures are also meant to protect the empty properties from falling into ruin, getting vandalized and from being used as gang headquarters. They stated that all these scenarios not only harm neighborhoods, but also depress the value of the properties themselves.

Residents have welcomed the suggestion, stating that living next door to vacant government tax foreclosure properties and empty bank foreclosed homes will be a little better if there is someone they can call. The no-trespassing order is also seen as a positive move since it will warn police officers that the premises is vacant and no one is allowed to enter.

Find more foreclosure listings in Grand Rapids, MI:

• Grand Rapids Cheap Houses

Las Vegas and Reno foreclosure listings have some of the highest levels of foreclosures in the state of Nevada. According to the institute study, non-foreclosure homeowners in Las Vegas have lost value on their properties by around $78,000 during the period July 2008-July 2009.

Homeowners living in areas where one can find foreclosure homes in Nevada by the thousands have called on lenders to conduct more short sales to prevent neighborhood deterioration and further decline in housing values. However, the Association of Realtors in Las Vegas has revealed that short sales have declined to 28% from a high of 34% recorded in June of this year.

According to housing analysts, the continuous rise in the number of bank and government tax foreclosure properties is pulling the prices of residences further down in Las Vegas. Their main concern is that most of these homeowners will likely abandon their properties and add further to the high number of vacant houses in the city.

The number of empty and foreclosure homes for sale is likely to increase in the coming months since an estimated 80% of homeowners in the metro area are said to be holding mortgages worth more than their homes. Analysts stated that majority of these underwater borrowers believe that they do not have much to gain in investing in their properties or in continuing to pay their mortgage obligations.

The study from UNLV has revealed that a neighborhood will feel the impact of foreclosures on their property values once the number of foreclosed properties reached 40. Once this number is reached, the authors stated that non-foreclosure properties in the area will lose around 20% of their property values. They also estimated that if all non-foreclosure value declines are attributed to bank and government tax foreclosure properties, then the overall value drop between July 2008 and July 2009 is around 33%.

Find more foreclosure listings in Reno, NV:

• Reno Cheap Houses

Cordray's request is a subsequent action of the campaign started by the AG last week which involved a lawsuit against Ally for allegedly signing and filing faulty affidavits in cases involving Cincinnati foreclosure homes and foreclosed properties all around the state.

The campaign was prompted by an employee who admitted earlier that he has been signing foreclosure affidavits for Ohio home foreclosures in behalf of the mortgage company without having any personal knowledge of case facts; which in itself, is a violation of established state laws.

Ohio's AG has earlier in the week accused Ally of not doing anything to slow down the processing of foreclosed homes, alleging that the firm is not vacating the supposedly faulty judgments. He further alleged that Ally has been telling courts that it expects to again make requests for the sale of the residential properties and the eviction of their owners.

The mortgage firm has reportedly denied the accusations, stating that it has not proceeded with any foreclosure sale. The firm added that it is sticking with its earlier announcement that it will halt the sale of foreclosures in several judicial states which include Ohio. The freeze on foreclosure sales is being seen by some market observers as an opportunity for government tax foreclosure sales to get more chances of finding buyers.

The halt imposed by Ally and several other mortgage servicers all around the U.S. has been done to give the companies time to review alleged faulty documents related to foreclosed properties. The issue has become a nationwide concern, with AGs from almost all U.S. states joining a coordinated investigation aimed at looking into so-called improper practices by mortgage servicing firms.

According to latest housing market reports, the countrywide investigation also aims to put a stop to any improper practice within the mortgage industry. The move has put thousands of bank foreclosures all around the country on hold, leaving the home selling market on the hands of government tax foreclosure sales and other types of foreclosed properties not affected by the freeze.

This occurrence has become quite common all over the U.S., including Georgia. With the state still reeling from the impact of the high number of foreclosures, including Atlanta bank owned homes, most residents turn to their retirement savings to provide a short-term solution to financial problems.

As Georgia foreclosed homes for sale numbers continue to rise and unemployment rates surge, most households find themselves lacking the necessary means to support their families and pay for their mortgage at the same time. According to the Fidelity report, 11.1% of 401(k) savers all over the U.S. took out loans during the second quarter of 2010, making it the period with the highest level of withdrawals in the past 10 years.

Meanwhile, over 2% of participants in the retirement plan program made a hardship withdrawal during the second quarter, with a big number of them citing bank and tax foreclosed homes related problems as reasons. The figure represents a two percent increase from the same quarter of 2009.

Overall, 62,000 participants all over the country made hardship withdrawals during the period, with 45% doing it for the second year in a row. Such withdrawals are usually done by those who are facing possible loss of properties to foreclosure homes listings and people who need money for medical emergency expenses, college tuition, buying a primary dwelling or for funeral expenses.

The average age of participants who took out loans or made 401(k) withdrawals were 35 to 55. Those who took out loans borrowed an average of $8,650 based on the Fidelity data. The report also revealed that the last time withdrawals and loans were this high for the retirement plan was during the 2009 second quarter.

Economists believe that the high number of 401(k) loans and withdrawals made is precipitated by rising unemployment rates and high levels of government, bank and tax foreclosed homes. Most borrowers have admitted that they are facing problems managing their daily financial needs.

Find more foreclosed homes in Atlanta, GA

The court's decision ended the city's hope of collecting foreclosure-related damages that would have been used to help homeowners who lost their properties to Cleveland home auctions. The city's attempt to bring their case to trial was snuffed by the 6th Circuit U.S. Court of Appeals' rejection of its arguments that banks should be held responsible for foreclosure-related problems in the city, including neighborhood blight and rise in crime rates.

Cleveland has accused banks of playing a direct role in the decline of communities in various areas of the city and the state since it allegedly participated in putting thousands of homes under Ohio foreclosure auctions. However, the three-member court panel disagreed and voted against the case.

The city initially filed a lawsuit of public nuisance against several banks and mortgage firms in Cuyahoga County on January 2008 in an attempt to bring so called abettors and aiders of subprime mortgages that caused thousands of residential properties to end up as bank and tax foreclosure homes. The city has asserted that these banks provided capital to lenders and were responsible for offering subprime loans as securities.

Officials further argued that this led to homeowners defaulting on their subprime loans, which left thousands of properties vacant and abandoned that not even people who purchase foreclosed houses are interested to buy. Cleveland further alleged that investors were left with worthless securities because of these subprime mortgages.

Lawyers for the city have stated that banks' actions caused a nuisance that cost the city tax revenue losses worth millions and forced the area to spend huge amounts of money to demolish and board up abandoned and vacant properties. The first and second lawsuits were both rejected on the basis of the city's failure to provide proof that there is a direct connection between banks' activities and government, bank and tax foreclosure homes and the damages claimed by the city.

Find more foreclosed homes in Cleveland, OH

According to the latest reports, buyers might find foreclosure lists littered with foreclosed dwellings due to unpaid taxes come October. Almost 5,000 pieces of real estate are said to be in danger of getting foreclosed due to unpaid property taxes, water and sewer dues and garbage user fees.

Tax collectors in the city are encouraging homeowners to get in touch with the city's tax collection office to avoid having their houses sold at Buffalo foreclosure auctions. Officials have added that those people who currently do not have the means to pay for delinquent taxes should get in touch with local officials to work on solving their debt problems.

Local officials have also added that owners need not lose their properties to auctions for tax foreclosed homes; all they need to do is to communicate with the taxation office. Ignoring tax notices is the worst thing to do, officials have added. Even homeowners who do not have the money to pay will be better off talking to tax officials so that alternative payment plans can be made.

So far, 4,770 properties are in danger of becoming New York foreclosed homes for sale and are likely to be offered at the October auction that will start on the 25th of that month. In July, tax assessors will pay visits to properties that appear in their list to ensure that demolition has been done. However, local officials are expecting the number of properties included in the list of foreclosures to diminish considerably during the months leading to the October auction.

Tax officials have also revealed that they are working with legal groups to hold assistance meetings a week prior to the auction of tax foreclosed homes in an effort to help homeowners set up plans to pay for their taxes.

Find more foreclosed homes in Buffalo, NY