Loans backed by the government – Loans insured by one of two governmental agencies are referred to as government loans. Federal Housing Administration and Veterans Administration loans are the two forms of government loans. FHA loans have the advantage of being easier to qualify for and allowing a borrower to finance a larger portion of the loan amount than non-government loans. A borrower may only be able to finance 80 percent of the loan amount with a
Conforming loan, whereas an FHA loan permits a borrower to finance 97 percent of the loan amount. FHA loans are advised for borrowers who are first-time home purchasers, have a small down payment, have a poor credit history, or are unable to qualify for a conventional loan. The VA permits borrowers to finance 100 percent of the loan amount, and the VA just demands verification of veteran status in order to qualify for the loan.check this site out here
The only disadvantage of government loans is that they demand mortgage insurance regardless of loan to value, unlike conventional and jumbo loans, which demand mortgage insurance based on the amount of equity a borrower has in his house.
Information on VA Loans VA loans are created to assist veterans in purchasing a home in the United States. A VA loan has the advantage of allowing you to buy a home with no money down. In addition, qualifying for a Veterans Affair loan is slightly easier than qualifying for a conventional loan.
Many people who qualify for a VA loan are unaware of their eligibility.