| The Department of Housing and Urban Development (HUD) is the federal agency responsible for national policy and programs that address America's housing needs. The Federal Housing Authority (FHA) which is part of the HUD plays a major role in supporting homeownership by underwriting homeownership for lower- and moderate-income families. FHA assists first-time home buyers and others who might not be able to meet down payment requirements for conventional loans by providing mortgage insurance to private lenders. Everyone, who has a satisfactory credit record, enough cash to close the loan, and sufficient steady income to make monthly mortgage payments can be approved for an FHA-insured mortgage. To get a FHA-insured loan, you need to apply to a HUD-approved lender.
FHA-insured loans are available in urban and rural areas for single family homes, for 2-unit, 3-unit, and 4-unit properties, and for condominiums. Interest rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans. Down payments can be as low as 3 percent, and closing costs can be wrapped into the mortgage.
With an FHA-insured mortgage, you can make extra payments toward the principal when you make your regularly monthly payment. By making extra payments, you can repay the loan faster and save on interest. You can also pay off the entire balance of your FHA-insured mortgage at any time.
|
|
VA Real Estate Loans
If you have served (or are currently serving) in the U.S. Armed Forces, you might qualify for a VA loan, which is a major benefit when buying a house. A VA loan is a mortgage loan tendered through the Veterans' Administration, which can be financially helpful for veterans who are disabled or currently experiencing a hardship. However, you do not have to be in dire need of assistance to qualify for a VA loan, contrary to popular myth.
The benefits of the VA loan include the following:
The VA loan is guaranteed by the Department of Veterans Affairs (DVA).
A major advantage of using a VA loan is that the borrower can finance the purchase of a property with no-money down.
The VA loan is restricted to individuals qualified by military service.
The Department of Veteran Affairs will guarantee the more popular 30 year fixed and 15 year fixed loan programs
|
