Government-backed loans are available through the FHA (Federal Housing Administration, a section of HUD -- the U.S. Dept. of Housing and Urban Development) to those wanting to buy a home. The FHA home loans help particular groups of people qualify for assistance that they otherwise may not receive. HUD guarantees the loan, which will be made by a regular lender. There are different types of home loans that the FHA will guarantee, and you must meet all qualifications for your particular program. The following steps outline the best road to take in order to receive a loan that is guaranteed by the FHA.
- A loan for first-time home buyers. You must be buying a home for the first time, meet credit qualifications, and be approved by an FHA lender. Know that government loans for first-time home buyers may have a
slightly higher interest rate because these buyers are most likely paying a small down payment.
- A loan for those buying a home that needs repairs. This will pay for both the purchase price and the cost of fixing up the home. The only qualifications are that you meet credit requirements and are approved by an FHA lender.
- A loan for those who want to buy a mobile or manufactured home. Qualifications for obtaining this loan are the same as those for buying a home that needs repairs (above).
- Plus, a loan for veterans. Home loans are available for qualifying veterans, current service persons, certain reservists and certain spouses. These are backed by the Veterans Administration (VA), rather than the FHA. Qualifying is similar to FHA loans and they don't require a down payment. To find out more, visit http://www.benefits.va.gov/homeloans/ .