One of the first things you may learn when buying a home is that there are two distinct types of loans. The first, of course, is a conventional loan, or one which is insured by Fannie Mae or Freddie Mac. The next, governmental loans, are those that are insured by a federal entity -- like the Housing and Urban Development department or Veteran's Affairs, for example -- and these are often excellent options for buyers looking for a competitive rate, low to no down payment, or in need of credit help.
FHA loans are mortgages that are insured by the Federal Housing Administration. In addition to offering attractive interest rates, FHA loans may have less stringent credit requirements and can be obtained with low down payments. Deciding between an FHA loan and a conventional loan? You should consider mortgage insurance, loan-level pricing adjustments, and assumability- among other things.
VA Loans are available to veterans of armed services, soldiers on active duty, or National Guard members. VA loans offer 100% financing (no money down) for purchase transactions below a specific loan amount. Not all VA loans are exactly the same: compare your options to get the best mortgage for you.
USDA loans are available to eligible homebuyers purchasing a home in a qualified rural areas. Some advantages of these programs include no-money-down, 100% financing and lower-than-average interest rates.
Check out our blogs on VA and FHA loans below, and check out the USDA website for details about eligibility. When you're ready to get started, we're ready!