New Home Buyer Tips: Types of Government Loans
Are you looking to purchase a government loan for your new home this summer but not sure, which government loan program to choose? At Service First, we provide various government loan options to choose from that will fit your budget and needs. Check out this list below!
FHA (Federal Housing Administration)
The standard FHA program offered is credit scores greater than 640. The FHA program allowed for gifts to be used for down payment and closing cost as well as other relaxed requirements.
FHA Freedom Loans
This FHA program is not available to all Lenders. It allows for common sense credit decisions. FHA Freedom is for first-time homebuyers, no score buyers, or a borrower in need of a second chance. FICO scores between 600 and 640 as well as No Credit Scores are allowed on this program.
VA (Veterans Administration)
Service First Mortgage has always made our veterans a priority. We know our veterans deserve the best, so we give them the best. VA loans are available to eligible veterans to be used to buy a home or refinance a home loan.
USDA sponsors a loan program for properties located in designated rural areas for borrowers with low to moderate-income levels. USDA sets specific guidelines for this program that center around credit requirements, down payment, property location, and income limits. This program is available for borrowers with credit scores as low as 640 with no down payment required.
There are some great government-sponsored loans programs featuring government-paid down payment, closing costs, or both. These programs are designed for more than just first-time home buyers. Ask your loan officer for details in your area!
Contact one of our mortgage loan professionals today to see if one of our government loans are right for you!