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What Major Home Loan Programs Can I Qualify For?

The iServe Blog


Whether you're getting ready to buy your first home or a condo for your golden years, the question of what kind of home loan program to use is an important one. Some programs can only be used by military families or veterans, whereas others are better for revitalizing homes or first-time home buyers. But which one is right for you? Here's a quick look at some of the major home loan programs available.

What Major Home Loan Programs Can I Qualify For?

  • FHA: As one of the largest federal programs, an FHA loan is insured by the federal government's Federal Housing Administration but offered through private mortgage lenders. Because it has a lower down payment percentage of 3.5 percent of the total loan, it allows individuals to finance a home who otherwise may find a 20 percent down payment to be a heavy burden. In general, most individuals qualifying for the loan need to have a credit score of 600 or above, though in some specific cases, scores as low as 580 are acceptable.
  • VA: If you, your spouse, a parent or a child have been in the military, a VA home loan may be a decent option to consider. Guaranteed by the Department of Veteran's Affairs but offered through private mortgage lenders, the maximum loan size is determined by the location, typically by the state. There are a wide range of programs, including fixed and adjustable-rate mortgages, various rates and terms as well as cash-out loans. For eligible veterans, there may be no down payment required, making it convenient when coming off a deployment.
  • USDA: If you're considering moving to a rural area, you may want to check whether this type of loan is available for your purchase. Because people in rural areas often move to urban areas, this loan helps those who are moving in the other direction. This type of loan is administered by the Department of Agriculture but offered through private mortgage lenders and can cover the entire amount of the loan and, in some cases, can even cover the closing costs. However, you need to have a particular amount of your monthly income tied up in mortgage payments to qualify, but you can make up to 115 percent of the median income in the area.
  • 203(k): If you're considering revitalizing or repairing your home, you'll want to look at the 203(k) program that is administered by the FHA but offered through private mortgage lenders. This program combines all the loan needed into a single mortgage payment, making it easier to manage overall. It's often used in communities that need overall revitalization, but the related 203(h) program can help with repairs and revitalization when a home is damaged in a natural disaster.

By knowing the basics of different home loan programs, you can make a smart decision about which one may be best for your situation. But what if you're not sure what program can benefit you? At iServe Residential Lending, LLC, our job is helping you find the right program for your home loan. Please feel free to contact us today with any questions or for more details.

 

 

iServe Residential Lending, LLC is not affiliated with or acting on behalf of or at the direction of the FHA, VA, USDA or the Federal Government.

Programs, terms and guidelines subject to change without notice. Not all applicants may qualify. All loans subject to underwriter and investor approval. Arizona Mortgage Banker License BK-0920658; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, License 413-0646; Colorado - Regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee License #19613; Licensed by the New Jersey Department of Banking and Insurance License # 512567; Licensed Mortgage Banker—New York State Department of Financial Services License # B501014; Oregon Mortgage Lending License ML-3238; Licensed by the Virginia State Corporation Commission (Lender License MC-3220),  NMLS # 2914 (www.nmlsconsumeraccess.org). iServe Residential Lending, LLC, 15015 Avenue of Science Suite 250, San Diego, CA 92128 Phone: (858) 486-4169