Government Loans: What Are They And How Do They Help Homebuyers
There are a number of types of loans that most homebuyers will qualify for. Most of us are very familiar with the conventional home loans, but what about some of the government loans available to qualified homebuyers? What are they, how can they help more people buy homes, and how do they work? If you want to know a little about government mortgage products, here are some of the basics to get you started.
VA Home Loan
One of the most common you’ll hear about is the VA loan. This is a loan expressly for members of the U.S. military and, in some instances, their spouses. For those who meet the criteria to qualify for a VA home loan, it can help you buy or build a home or even complete renovations.
To apply for a VA home loan, a veteran would be best served by talking with an independent mortgage lender to learn about options and complete all the necessary paperwork.
USDA Home Loan
The USDA may be of interest to people throughout our region of southern Appalachia. The loan is designed to give individuals and families in rural areas a chance at buying affordable housing. This program specifically focuses on well-built and safe rural homes for participants.
To qualify, the property has to be eligible for the USDA home loan program. Then the buyer can apply for the loan through a variety of channels.
FHA Loan
The FHA, or Federal Housing Administration, also has government-backed loans for buyers. It’s designed for individuals with low to moderate-income levels and it will require lower down payments and credit scores for these potential buyers. The FHA will guarantee the loan through a lender.
There are a few types of FHA loans, so it’s always best to talk with an independent mortgage lender here in Asheville at GoPrimeMortgage.
FHA Renovation Loan
One particular FHA loan is the renovation loan. If your home or a home you’re buying is in need of major renovations, it can be difficult to find financing for the project. But the FHA Renovation Loan is designed specifically for that purpose. There is a limited option that helps with uncomplicated improvements as well as a standard loan for more complicated projects like additions or construction.
To learn more about the options and whether your project would qualify, talk to an independent mortgage lender. For real estate agents in Asheville, it’s helpful to understand the basic requirements of these loans as well as partner with a local lender who can walk your buyers through the application process.
