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Government Assisted Mortgages
FHA Home Mortgage loans
An FHA Home Mortgage Loan is insured by the Federal Housing Authority. The FHA is a Federal Agency the is associated with the Department of Housing and Urban Development (HUD). The FHA does not actually lend the money to buy homes but rather provides insurance for lenders in the event that the borrower defaults on their FHA home financing obligation.
These loans are available to all buyers but were designed to be used by low to moderate income families that have good credit but are not able to get approved for conventional mortgages. FHA Home mortgage loans really benefit borrowers that have very little cash to put down, all you need is 3% of the purchase price. Another great benefit of this government mortgage plan is that the FHA mortgage interest rates are often very close to the market rates for standard conforming loans.
Some other benefits of the FHA government assisted mortgages are:
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You only need 3% down
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You can Finance Your Closing Costs
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Mortgage Insurance Premiums Are Lower
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Flexible Underwriting
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FHA Limits Closing Cost Amounts Lenders Can Charge
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Qualified BUyers Can Assume The Mortgage
VA Home Mortgage Loans
VA mortgage loans are home loans that are made through qualified lenders and secured by the U.s Department of Veterans Affairs. They are available for qualified veterans for the purchase or refinance of a home or existing mortgage. In almost all cases no down payment is need to buy a home with a VA loan and the VA mortgage interest rates are usually lower then other available loans.
Some Additional Benefits Of This Government Mortgage Plan Are:
- Very Low Interest Rates
- No Private Mortgage Insurance is Required
- No Pre Payment Penalties
- Mortgage Can Be Assumed When Home Is Sold
- Financial Counseling Available To Veterans Facing Foreclosure
Even though you do not need to have private mortgage insurance on your loan the VA does charge a funding fee for every loan they guarantee. This fee can be paid by either the home seller, the home buyer or rolled into the loan balance.
Veterans can apply for VA backed mortgages with any mortgage company that is currently participating in the VA home loan program. All they need to get started is to present their certificate of eligibility to their lender.
If You Have Any Questions On These Government Mortgage Plans
If you have any questions on any of these Government Mortgage Plans feel free to contact one of our friendly and professional mortgage consultants at (414) 771-1200
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