FHA, USDA, and VA Loans
Government Loans are backed by the Federal Government and because of this they frequently have lower interest rates and easier qualification standards.
FHA loans are backed by the Federal Housing Administration. FHA loans tend to have a lower down payment requirement than conventional loans. FHA loans have lower credit requirements which makes more people able to qualify. FHA loans also required Private Mortgage Insurance.
USDA Loans are loans designed to enable borrowers who live in rural and certain suburban areas to secure financing for a home. USDA loans allow borrowers to finance the entire sales price of the home.
VA Loans is backed by the U.S. Department of Veterans affairs. VA loans are for veterans, current military personnel, and qualifying surviving spouses. You need to have a minimum qualifying credit score, but you can finance the entire sales price of the home. There is an approval process you must follow, and your loan officer will guide you through the process.
