FHA & VA Loans

If you are prospective homebuyer with a low- to moderate-income, your borrowing options with a private lending institution can be somewhat limited.  Let's face it: banks want you to have a good credit rating and a high income.  So, what do you do if you want to buy a home but your income and your down payment aren't very high?

The federal government has a number of programs in place to help people with lower incomes realize the American dram of home ownership.  One of these programs is administered by the Federal Housing Administration (FHA).  Another is governed by the Veterans Administration (VA).  There are some differences between the two programs, but their main purpose is very similar:  to provide those with lower incomes the opportunity to enjoy home ownership. 

There are a number of benefits associated with FHA and VA loans.  One major advantage is that you don't need a high income in order to qualify for the loan (your credit file would be taken into consideration, however).  Another benefit of these loans is the extremely low down payment that is typically required to purchase your home.  For the FHA program, the down payment can be as low as 3% of the purchase price.  That's a big difference from the 20% down payment that's normally required for a conventional loan.  For VA loans, its even better.  IF you qualify, the down payment can be as low as 0%.  A veteran can also re-use his or her VA eligibility over and over again.

Both loan programs normally offer interest rates that are below standard market rates.  This means lower monthly payments, as well as huge savings over the life of the loan.  The FHA program does required the payment of Mortgage Insurance Premium.  If can, however, be financed in to the loan at closing.

The FHA and VA loan guarantee programs are two great ways to assist you in purchasing your new home.   Call one of our qualified loan officers to help you started  800-888-1135.