FHA & VA Loans

Loans from Your Uncle Sam

There's more than one way to finance your home purchase – in fact, there are thousands! Understanding who has loan products and how they can help you will make your home buying process so much easier. Learn about the advantages of government-backed VA and FHA loans. Many first-time buyers choose them because they require little or no down payment for qualified buyers.

Veteran's Administration (VA) Loans
Qualified veterans (including Reserves and National Guard) can take out loans with up to 100% financing for more than $200,000 – with no down payment – and still get flexible underwriting guidelines. Closing costs are regulated and may be tagged as a gift. Plus, VA-guaranteed loans can be combined with second mortgages and taken on by qualified future buyers. But the best part might just be that payments are fixed for the entire loan term so you won't have to worry about interest rate increases.

Federal Housing Administration (FHA) Loans
While the Federal Housing Administration (FHA) doesn't technically make loans, it makes getting them easier. The FHA insures loans, which can encourage lenders to offer more favorable terms. That's because the insurance protects lenders against potential losses by paying the lender if a homeowner defaults. And with an FHA loan, down payments can be as low as 3%.

The only requirement is showing sufficient monthly income to pay the mortgage. But remember: the FHA charges an up-front Mortgage Insurance Premium similar to Private Mortgage Insurance (PMI). However, this premium can be financed and paid monthly as part of the mortgage, (so you don't have to pay it upfront), or paid at closing. You can also pay a one-time charge (discount points) at closing to help get a lower loan percentage rate.

With so many loan options, you want to make sure you find the one that best meets your needs. And working with your Real Living agent and a mortgage consultant will help you understand the different options and make the best choice. Get in touch with Real Living to get started and find your loan.