Government Loan Programs
If you are borrowing for the first time, FHA and VA loans may be good options since they often have more flexible qualification standards than many conventional loans.
Federal Housing Administration (FHA) loans allow for a 3.5% downpayment, which can come from a variety of sources, including gifted funds. In most cases, VA loans require no downpayment.
Besides making the process simple and easy to understand, our preferred lending team are experts at navigating through government loans! They know buying a home is one of the most important and satisfying investments you can make. Their mission is to help you understand your options and to help you find the best loan program that will fit your goals and lifestyle.
The VA provides home loan guarantees and other housing-related programs. You may qualify if you are a service member, veteran, or eligible surviving spouse. These loans can help with buying, building, repairing, retaining, or adapting a home for personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
VA mortgages are government-guaranteed loans available to veterans of the armed services, those currently on active duty or in the reserves, and widows or widowers of veterans. Like FHA loans, VA loans have guidelines that allow more people to qualify. Some VA loans require no downpayment. There are limits on the size of VA loans, but usually they are large enough to cover the purchase of moderately priced homes across the country. VA-guaranteed home loans are made by private lenders; the guaranty means that the Veterans Administration will protect the lender against loss if the veteran or a later owner fails to repay the loan.
Federal, state and city programs are available for active members of police and sheriff departments, as well as firefighters and other first responders. So that these local heroes can become part of the communities they serve, we can help them secure downpayment assistance, discounts on first mortgages, home equity loans and more.
These mortgages, administered by the U.S. Department of Housing and Urban Development (HUD), are government-insured loans that require very low downpayments. Rates are often lower, and qualifying is easier because credit requirements are not as stringent. FHA loans are often assumable, meaning you can take them over from the previous owner or allow a buyer to take it over from you. Refinancing is easier, and there are other products and services available. There is, however, a cap on how much can be borrowed. Processing may take longer and appraisal guidelines may be strict; the house must be worth the selling price. FHA mortgages are not restricted to first-time borrowers.
Zero Downpayment Act eliminates the downpayment requirement for families and individuals who buy homes with Federal Housing Authority (FHA) insured mortgages. You may qualify for the Zero Downpayment Act if you are a first-time homebuyer without enough savings for a downpayment, but can easily afford monthly mortgage payments. (A first-time homebuyer is defined as an individual and his or her spouse who have not owned a home during the prior three-year period.) The zero down plan is different from assistance programs like the American Dream Downpayment Act: instead of granting a lump-sum award to qualified homeowners, FHA charges a modestly higher insurance premium to lenders on its zero-down loans.
This program provides a variety of financing for low- and very-low-income buyers in rural areas. You may qualify if you are a farmer or live in a rural area. The Rural Housing Service (RHS) provides a number of homeownership opportunities to rural Americans, as well as programs for home renovation and repair. RHS also makes financing available to elderly, disabled or low-income rural residents of multi-unit housing buildings to ensure they are able to make rent payments. Direct loan grant income limits are listed by state on the program’s website.
FHA’s Energy Efficient Mortgage program helps finance the cost of adding energy efficiency features to new or existing housing. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD.
Special programs are available to assist with down payments. You may qualify if you work full time for a public school, private school, or federal, state, county or city education agency as a state-certified, classroom teacher or administer in grades K-12.