Mortgages Made in Amurrica.
Government-backed loans accommodate buyers far and wide and with credit and down payments great and small. Learn about each type in this overview:FHA Loans
FHA loans are guaranteed by the Federal Housing Administration, and perhaps the most well-known out of the three types of government-backed loans. FHA loans don’t require a big down payment like other loan types do. In fact, you can put as little as a 3.5% down payment on your house with an FHA loan.
A relative downside of FHA loans is that they have a mandatory mortgage insurance (MI) requirement with a monthly premium. This could equate to hundreds of extra dollars per month for borrowers paying for mortgage insurance. MI must be paid for the lifetime of the loan, not just until you have accumulated enough equity (unlike Conventional loans).USDA Loans
USDA loans are guaranteed by the United States Department of Agriculture and target borrowers in rural communities who are income eligible for their county. USDA loans can be used to buy a home, but they can also be used to renovate a home or perform home construction. USDA loans have very low interest rates and don’t have any loan limits. There isn’t a down payment requirement for USDA loans, but you are limited to purchasing a home that meets the USDA standards. USDA Loans do require MI, though USDA mortgage insurance rates are generally lower than those of FHA. VA Loans
VA loans are guaranteed by the Department of Veteran Affairs and are generally limited to active duty military and veterans. Borrowers who qualify for VA loans can enjoy numerous benefits, such as no down payment requirement or no mortgage insurance requirement. VA loan borrowers can also enjoy low credit standards and can even qualify for a mortgage after a foreclosure, short sale, or bankruptcy if the borrower’s credit has since improved.
A possible downside of VA loans is that they require a VA funding fee when the loan finally closes, which is an amount that is equal to anything between 1.25 and 3% of the home’s cost. This represents a huge financial burden to those who may not have that money in cash reserves.
How to qualify: http://goo.gl/CJ9Z84