By offering to insure borrowed funds up to 80% of value, the lender is able to insist that the down payment be made in cash, permit no secondary financing, and command a moderate interest rate. FHA government home loans were for long terms, up to 20 years at first, and fully amortized over the term. Each monthly payment included a premium to cover the cost of mortgage default insurance. Most of the features of the FHA government home loan were later implemented in the VA guarantee program which services veterans and their spouses.