5 Federal Loans To Know For First Time Home Buyers

When it is time to buying a home, the US Government wants everyone to have a piece of the American pie. There are special loan programs for any citizen who is looking to buy real estate. VA Home Loan Centers, as well as FHA Home Loan Offices are places to look for the information needed to secure the loan. These official web sites and online resources are reliable for gathering information.

Here are 5 important options to know about a first time home loan:

- $0 Down VA Loan

- $0 Down USRDA Loan

- 3.5% Down FHA Loan

- FHA 203k Construction / Rehab Loan

- 20% Down Conventional Loan

The $0 Down VA Home Loans are advantageous for obvious reasons. No money down is needed. This is productive because it provides buyers a way to get into a home without needing a ton of money in savings. Home improvement costs can be added to the loan amount The downside is that the seller has to pay part of the buyers closing costs and the amount paid back is higher than if a down payment was made.

A $0 Down USRDA Loan is guaranteed and designed for farms and low income borrowers. The $0 Down Payment is certainly the big one once again, as well as being able to wrap up property improvement costs into the loan. There is no maximum purchase price limit and.

$100.00 down and 3.5% Down FHA Home Loans are another way of getting a home. For FHA loans, a downpayment is required but the funds can be a gift. With FHA there is less principle to pay so that means either lower monthly payments or lower total interest costs.

FHA 203k Construction / Rehab Loan is designed for re-construction of an existing property. It could be an existing owner occupied home including single families and two to four units and condominiums. This can be the ideal loan for anyone who wants to buy and sell foreclosures.

20% Down Conventional Loan is the old standard. This requires the most financial responsibility but offers the better rates. Making a down-payment will lower the amount you borrow. It means that less interest will be paid on the amount owed because it will be 20% less than the total amount for the loan. Unfortunately most people do not have a large sum to make a downpayment.

A few basic requirements for government the loans are:

Must be 18 years of age

Must have acceptable income and credit rating for each product

Must provide proof of income (two years tax returns)

The government loans offer a fast track to home ownership. Easy qualifying and low, fixed monthly payments ensure your home loan payment is affordable. More importantly, these loans provide access to homes for people with little or now money down. Past credit issues can be overlooked when applying for these loans.


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Philip Georgiades VA HLC. If you are a US citizen over 18, and would like to originate a government guaranteed home loan or want home loan info for USDA, FHA, or VA loans, see your local VA Home Loan Centers Office. First time buyers visit here, Prior home owners visit here. Note* Funds for non-veterans are limited and issued only in order application was recieved.