Government Loan Programs
Following is an overview of the most common government loan programs in the United States:
FHA Loans: The Federal Housing Administration (FHA) insures loans offered by FHA-approved lenders. These loans are designed to help first-time homebuyers, individuals with low-to-moderate income, and those with lower credit scores. Borrowers can make a down payment as low as 3.5% of the purchase price.
VA Loans: The U.S. Department of Veterans Affairs (VA) guarantees loans offered by VA-approved lenders to eligible veterans, active-duty military personnel, and surviving spouses. These loans offer 100% financing with no down payment required.
USDA Loans: The U.S. Department of Agriculture (USDA) offers loans to individuals in rural areas who meet certain income requirements. These loans offer 100% financing with no down payment required.
Native American Direct Loan (NADL) Program: This loan program is designed to help Native American veterans purchase, construct, or improve homes on federal trust land. The VA directly provides the loan to eligible borrowers.
FHA 203(k) Rehabilitation Loan Program: This loan program allows borrowers to finance the purchase or refinance of a home along with its renovation costs.
These government loan programs generally offer more lenient qualification requirements compared to conventional loans. However, each program has its specific eligibility criteria, loan limits, and other guidelines.