Government Loan Programs
Federal Housing Administration (FHA) Loans:
FHA mortgage programs are available to all buyers. These programs
are designed to help creditworthy low-income and moderate-income
families who do not meet requirements for conventional loans.
FHA loan programs are particularly beneficial to those buyers
who don't have much cash available.
FHA loan benefits:
Only
requires a 3% down payment
Ability to finance closing costs
FHA has set limits on the amount lenders can charge for some
closing cost fees (e.g. origination no more than 1% of mortgage)
Maximum mortgage amount can vary significantly by area. FHA
adjusts this amount periodically based on certain economic variables.
You should check with your local FHA office or approved lender
to determine your maximum mortgage amount.
Under certain conditions, automatic cancellation of the FHA
mortgage insurance premium
Click here to learn more about the Federal Housing Administration
(FHA).
Department of Veteran Affairs (VA) Loans:
VA loan programs are available to eligible veterans
for the purchase of a home. The VA guaranty loans encourage
lenders to offer loans to veterans by protecting lenders against
loss if the borrower cannot make the payments. VA loans are
particularly beneficial to those veterans that do not have much
cash available. VA guidelines allow higher front-end and debt
ratios compared to other loan programs.
VA loan benefits:
No down payment requirement
More favorable interest rates are frequently offered by lenders
because of the VA's guarantee backing
Ability to finance funding fee
No mortgage insurance premiums
Maximum loan amount may be 100% of appraised value of home,
determined by a VA-approved appraiser or up to four times the
VA eligibility entitlement (currently $50,750 with a maximum
loan amount of $200,300).
