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Government Loans

Government-backed loan is a loan subsidized by the government which make home ownership affordable to lower income households and first-time buyers.

FHA Loans

Available to all buyers, FHA loan programs are designed to help credit worthy low-income and moderate-income families who do not meet requirements for conventional loans.

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MI) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help credit worthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

  • Only a 3 percent down payment is required.
  • Closing costs can be financed.
  • Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
  • More flexible underwriting criteria than conventional loans.
  • Loans are assumable to qualified buyers.

VA Loans

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features.

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

  • Negotiable interest rates.
  • Closing costs are comparable and sometimes lower - than other financing types.
  • No private mortgage insurance requirement.
  • Right to prepay loan without penalties.
  • Loans are assumable to qualified buyers.
  • Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
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Who can apply for a VA loan?

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.