FHA & VA Loans
Government Backed Loans – Fixed or Adjustable
Federal Housing Administration (FHA) loans are insured by the U.S. Department of Housing and Urban Development. They are designed to assist moderate to low income borrowers participate in the American Dream of home ownership. The down payment for FHA loans is 3.50% of the Purchase Price.
FHA loans can offer loans with lower credit scores, past credit problems, or less money for a down payment the opportunity to purchase a home sooner. Since they have government insurance behind them, investors often offer lower interest rates on FHA loans. To support the higher risk for the government and the investor, mortgage insurance may be higher and stays with the mortgage for the life of the loan.
VA loans are provided by the U.S. Department of Veterans Affairs. They were created following WWII to provide returning service members a way to purchase a home without a down payment or excellent credit.
To qualify for a VA loan, you must meet one or more of the following conditions:
1. Served 90 consecutive days of active service during wartime, or
2. Served 181 days of active service during peacetime, or
3. Served more than 6 years in the National Guard or Reserves
Those without a down payment may qualify for an FHA loan utilizing down payment assistance programs. Because there is higher risk for borrowers without a down payment, interest rates and loan fees may be higher. Restrictions on income and house location may also exist.
HUD 184 - Native American Loans
There is a special HUD loan for those who qualify as Native Americans. These loans have restrictions based on tribal membership. About 90% of all Native American loans are originated in Oklahoma.