history of bankruptcy<\/a>, or because they are self-employed. So, let\u2019s see what types of government mortgage loans there are.<\/p>\n\n\n\nFHA Loans<\/h3>\n\n\n\n
FHA loans are the ones insured by the Federal Housing Administration. This means that the FHA doesn\u2019t issue them directly, but if you default on your mortgage, the agency will compensate the private lender. Since it is less risky for them, mortgage lenders usually offer more favorable terms here than with conventional mortgages.<\/p>\n\n\n\n
To qualify for the FHA loan, you should have a credit score of at least 500. If your score is between 500 and 579, you will likely have to make a down payment of 10%. But, if it is 580 or higher, your down payment can be as low as 3.5%. Note that all Federal Housing Administration loans require mortgage insurance, so you should also plan for that extra cost.<\/p>\n\n\n\n
VA Loans<\/h3>\n\n\n\n
VA loans are backed up by the US Department of Veterans Affairs and are meant to help military service members, veterans, and their eligible family members find a home. Similar to getting an FHA loan, the federal government will compensate the lender if you default on your VA loan monthly payments. However, there are some differences. <\/p>\n\n\n\n
If you\u2019re after the types of mortgage loans with no down payment requirements, the VA loans might be an excellent choice, as they require no upfront cash and don\u2019t have mortgage insurance. You are only required to cover the VA funding fee, which must be paid upfront. <\/p>\n\n\n\n
USDA Loans<\/h3>\n\n\n\n
If you\u2019re considering purchasing a residential property in a rural area, a USDA loan might be just what you are looking for. The US Department of Agriculture offers these government-backed mortgage programs for people with low and middle incomes. The best thing about USDA loans is that they usually don\u2019t require any down payment and have fixed interest rates. <\/p>\n\n\n\n
To qualify for a USDA loan, the borrower needs to live in an area with up to 35,000 people and can\u2019t make more than 115% of the area\u2019s median income. If you meet all of these criteria, you can apply for the mortgage directly with the USDA Rural Development office.<\/p>\n\n\n\n
HUD Section 184 Loans<\/h3>\n\n\n\n
Lastly, there\u2019s another type of mortgage loan for those with bad credit, the HUD Section 184 mortgage. These mortgages are guaranteed by the HUD\u2019s Office of Native American Programs. They are designed for American Indian and Alaskan Native families, Alaskan villages, tribes, or tribally designated housing entities struggling to purchase a home.<\/p>\n\n\n\n
The mortgages don\u2019t have any requirements in terms of minimum credit score and usually come with a low down payment. However, there are some limitations borrowers should be aware of. HUD Section 184 loans are limited to single-family housing and fixed-rate loans of up to 30 years.<\/p>\n\n\n\n
Final Thoughts<\/h2>\n\n\n\n
Now that you\u2019re more familiar with all the mortgage types on offer, you should have a much easier time picking one. Just make sure to do your due diligence<\/a> to find a property that suits your needs the best. Remember to read the fine print and make timely mortgage payments to avoid any surprises in the form of additional costs.<\/p>\n","protected":false},"excerpt":{"rendered":"Buying a house is one of the turning points in …<\/p>\n
Types of Mortgage Loans: Making the Most Out of Your Mortgage<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":16,"featured_media":276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"","footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/posts\/275"}],"collection":[{"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/comments?post=275"}],"version-history":[{"count":2,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/posts\/275\/revisions"}],"predecessor-version":[{"id":3484,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/posts\/275\/revisions\/3484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/media\/276"}],"wp:attachment":[{"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/media?parent=275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/categories?post=275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smallbizgenius.net\/wp-json\/wp\/v2\/tags?post=275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}