Federal Housing Administration (FHA) Loans and Veterans Affairs (VA) Loans.
Federal Housing Administration (FHA) Loans.
The FHA insures a wide
variety of mortgages provided
by many lenders.
Veterans Affairs (VA) Loans
The Department of
Veterans Affairs (VA)
guarantees mortgages
provided by many
lenders.
Customer Benefits of Federal Housing Administration (FHA) Loans and Veterans Affairs (VA) Loans.
Federal Housing Administration (FHA) Loans.
- Low down payment requirements.
- Loan limits based on geographic locations.
- Generally more liberal qualifying guidelines.
- Use of gift funds for down payment and/or closing costs
Veterans Affairs (VA) Loans
- Low or no down payment requirements.
- A wide range of rate, term, and cost options.
- Flexible qualifying guidelines.
- Use of gift funds for closing costs.
Homebuyer’s Scenario of Federal Housing Administration (FHA) Loans and Veterans Affairs (VA) Loans.
Federal Housing Administration (FHA) Loans.
Homebuyers purchasing
a home with little money
down, who may be overcoming
credit challenges
including a limited or lessthan-perfect
credit history,
and/or need the help of a
family member or friend
as a co-signer to qualify.
Veterans Affairs (VA) Loans.
Qualified veterans and
active-duty military personnel
and their spouses
who are first- or secondtime
homebuyers.
Tips for Loan Shopping..
Ask about “points.” Points are fees charged to borrowers by lenders. One point is equal to 1% of the loan
amount. Many loan programs allow you the option of receiving a discounted interest rate by paying points
or other fees. Ask if the interest rate the lender quotes you reflects the payment of points.
Ask lenders for the Annual Percentage Rate (APR). When you want to determine which loan will likely cost
you the most, the Annual Percentage Rate (APR) is a quick way to make a first comparison. The APR takes
into account a loan’s interest rate, term, and fees to illustrate the total cost of credit expressed as a yearly
rate. This will allow you to compare different loans.
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