About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Home Purchase Programs

As we discuss on our home purchase page, there are several government-backed home purchase programs available. The main categories of programs are Fannie/Freddie loans, FHA loans, VA loans, and USDA rural housing loans. Each has advantages and disadvantages. Below is a list of some pluses and minuses of each program.

Fannie/Freddie loans

+ No up front fees
+ No PMI when you have more than 20% equity

– Requires at least 5% down payment
– Normally requires good credit scores and history

FHA loans

+ Only requires 3.5% down payment
+ Much more lenient on credit scores and past credit problems

– Has a 1.75% up front fee that rolls into loan
– Requires monthly PMI fee for the life of the loan

VA loans

+ Zero down payment required
+ No PMI

– Must have military experience to be VA eligible
– Charges up front fee of at least 2.25% of loan (unless borrower has disabled status)

USDA Rural Housing loans

+ Zero down payment required
+ Much smaller upfront fee and ongoing pmi-like fee than FHA

– Only applicable in areas deemed “rural” by USDA
– Requires good credit scores and history
– Has upper income limits — borrowers who make too much not eligible

All of these programs are excellent overall. It’s mostly a matter of which program fits best. Contact us today at our home purchase page to learn more about which program fits best for you and to get pre-qualified for a home purchase loan.

Comments (1) Posted by G.R.A. Admin on Saturday, March 11th, 2017


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