|
|
Government Home Loans
Several federal, state and local government financing programs are available to homebuyers. The two main federal programs are:
VA Loans. U.S. Department of Veterans Affairs (VA) loans are available to men and women who are now in the military and to veterans with an other than dishonorable discharge who meet specific eligibility rules, most of which relate to length of service. The VA doesn't make mortgage loans, but guarantees part of the house loan you get from a bank, savings and loan or other private lender. If you default, the VA pays the lender the amount guaranteed. This guarantee makes it easier for veterans to get favorable loan terms with a low down payment. For more information, check the VA's Website at http://www.va.gov or contact a regional VA office for advice.
FHA Loans. The Federal Housing Administration (FHA), an agency of the Department of Housing and Urban Development (HUD), insures loans made to all U.S. citizens and permanent residents who meet financial qualification rules. Under its most popular program, if the buyer defaults and the lender forecloses, the FHA pays 100% of the amount insured. This loan insurance lets qualified people buy affordable houses. The major attraction of an FHA-insured loan is that it requires a low down payment, usually about 2% to 5%. For more information, on FHA loan programs, contact a regional office of HUD or check the FHA website at http://www.hud.gov/mortprog.html.
For information on other government loans, contact your state and local housing offices. They often have programs available for first-time homebuyers who are purchasing modestly-priced properties. To find your state housing office, check U.S. State Resources on Findlaw (http://www.findlaw.com/state_gov/index.html). Start by looking at your state's home page. You'll probably find the listing for your state's housing office.
|
|
