Government loans
FHA loans
The US Department of Housing and Urban Development insures FHA loans. FHA loans are great for first-time homebuyers who may not have much money saved up for a down payment and closing costs. FHA loans typically allow applicants with lower credit scores and incomes to attain homeownership with an affordable mortgage option. Here are some details about FHA Loans:
- Mortgage Insurance and Mortgage Insurance Premiums required
- Minimum credit score requirements
- Down Payment options as low as 3.5% of the sales price of the home
FHA loans were initially designed for low to moderate-income borrowers, but anyone can apply for an FHA loan. Borrowers with stronger credit histories and higher incomes often choose conventional mortgages.
MEP offers traditional FHA mortgages for primary residences and FHA 203(k) loans, which include funds to cover repairs, renovations, and other home improvements.
VA loans
The US Department of Veterans Affairs insures VA loans. To qualify for a VA loan, a borrower must be a Veteran, Active-Duty Military, or the surviving spouse of a veteran. Applicants must contact the VA directly for eligibility information and access to benefits. One of the most significant advantages of the VA loan is that there is no down payment requirement. Here is a quick snapshot of the additional benefits VA borrowers can take advantage of:
- No down payment requirement
- No mortgage insurance
- Lower interest rates
- Lower closing costs
- Streamline refinancing
- Loans may be assumable
USDA loans
A USDA loan is a mortgage option allowing homebuyers in rural and select suburban areas an affordable mortgage option. The US Department of Agriculture backs USDA loans. If you qualify for a USDA loan, you will not be required to make a down payment. Here are some eligibility requirements for USDA loans:
- US resident
- The home must be in an eligible area
- Income Restrictions may apply
- Debt to Income Restrictions may apply
- Credit Score Restrictions may apply