Government Home Loans at a Glance

Learn About the 4 Types of Government Home Loans. You Are Eligible For One or More of These Programs!

Federal Housing Administration (FHA)-guaranteed loans may be the most well known government home loans, but they are by no means the only government home loans available today. FHA loans are available regardless to anyone, but if you are a US service member or veteran, live in a rural area, or are a Native American, you may be eligible for a government-guaranteed, low down-payment loan. Read on to learn about FHA, VA, USDA, and Section 184 home loans.

Federal Housing Administration

The FHA administers approximately a half-dozen guarantee programs to help people finance the purchase of homes, and borrow money to make their newly purchased or existing homes more efficient. The programs include:

• Basic FHA Insured Home Mortgage
• Mortgage Insurance for Manufactured Home and Lot
• Energy Efficient Upgrade Mortgage Loan
• PowerSaver Home Energy Retrofit Loan Pilot Program

The FHA does not lend money directly to home buyers. FHA-approved lenders make loans through FHA insurance programs. Here are five key facts about FHA loans:

• Any person intending to be an owner-occupant can apply for an FHA insured mortgage.
• The FHA limits the amount that can be borrowed. FHA limits are set by where the property is situated.
• FHA limits some lender fees. For example, the lender mortgage origination fee may not exceed 1 percent.
• Downpayments start at 3.5 percent.
• The FHA allows lower credit scores than borrowers with conventional loans.

See the Bills.com FHA Loan Limits, Requirements, Rates Tips article to learn more about FHA loans.