When it is time to buying a home, the United States 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:
VA Home Loans
The $0 Down VA Loans are advantageous for obvious reasons. No money down is needed. This is good because it allows buyers a way to buy a home and invest nothing. 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.
USDA Home Loans
A $0 Down USDA Home Loan offers advantages for purchases of rural properties and farms. 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.
FHA Home Loan
$100.00 down and 3.5% Down FHA Home Loans are another way of getting a home. For FHA loans, a down payment 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.
Conventional Loans
20% Down Conventional Loan is the old standard. This requires the most financial responsibility but offers the better rates. Having 20% down payment means less money has to be borrowed. 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 down payment.
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. These programs are open to all kinds of credit types even prior foreclosure, bankruptcy, and short sales are okay. Contact us today to get your piece of the American dream.
