Government loan programs

FHA loans are insured by the Federal Housing Administration, a federal

agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance in case of default by the borrower. FHA loan programs are designed to help creditworthy families who may not meet requirements for conventional loans and are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Fixed or Adjustable interest rate
• Only a 3 percent down payment is required, which may be Gift
• Closing costs may be paid by the seller or Gift
• Lower monthly mortgage insurance premiums (MIP) 
• Underwriting criteria generally more flexible than conventional loans
• Loans are assumable by qualified buyers

VA Loans are guaranteed by the U.S. Department of Veteran Affairs (VA).

See VA Loans for more information.