Government Loans to Finance a Home
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Government Loans to Finance a Home
If financing a home is difficult for you, you may benefit from a government loan program.
Things To Know
- VA and FHA loans are available to eligible people.
- The states and many cities have loan programs of their own.
US Department of Veterans Affairs
VA loans are available to eligible veterans. The VA does not itself make loans; rather, it guarantees a portion of the loan that you have with a lender. It will pay the lender the portion of the loan if you should default. You will then owe the VA for the balance.
Advantages of VA loans include no down payment required, more favorable interest rates (because of the guarantee), and no mortgage insurance premiums. More information is available at www.benefits.va.gov/homeloans/.
Federal Housing Administration
The FHA also guarantees loans. Down payment requirements are low, closing costs can be financed, and mortgage insurance may be waived. More information is available at https://www.hud.gov/buying/loans.
Both of these programs have restrictions and eligibility criteria.
Other government loans
The states and many cities have loan programs of their own.