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).
