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Guaranteed Loan: A loan guaranteed by a third party in the event that the borrower defaults . The loan is quite often guaranteed by a government agency which will purchase the debt from the.

The USDA has been offering two types of loans – Direct and Guaranteed – for as long as anyone can remember. Both allow 100 percent financing, and neither requires mortgage insurance. Vital recalls.

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According to figures from the President’s new budget, the government pays a subsidy of 11.0 percent on guaranteed loans, while it pays a subsidy of only 3.65 percent on direct loans – a difference of.

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