There are several options for you to consider when exploring home loan products. Government-backed loans are very popular among people of all situations, whether they are first-time home buyers, a veteran or in the military, or fall into the low-income category of homebuyers, there is a government loan that may be a perfect fit.

The VA Home Loan is one of the best options on the market. It is available to Veterans and service members who fall under at least one of the following categories:

• Have served on active duty for 181 days during peacetime

• Have served on active duty for 90 days during war time

• Have been in the National Guard or Reserves for at least 6 years

• Your spouse was killed in the line of duty or from a service-related injury

Great services and benefits of the VA Loan include:

• No down payment

• No private mortgage insurance (PMI)

• Low closing costs

In order to apply for a VA Loan, you must prove you are eligible and meet the service requirements. To do this, you need to obtain a Certificate of Eligibility (COE), which your VA-approved lender can help you do.

As with all government-backed loans, the VA does not lend the money; rather it’s loaned through a VA-approved lender, and the VA guarantees the loan (meaning if you were to default on your mortgage payment, the VA will repay 25% to the lender).

USDA Loan:

The benefits of USDA Loans are tremendous. The loan offers 100% financing of the appraised value of the home, and it is available only to families purchasing a rural property.

Another benefit of the loan is that, like the VA Loan, there is no down payment required. There is also no set maximum loan amount; rather the lender will determine the loan amount based on the borrower’s income and repayment ability.

Requirements to determine eligibility:

• Debt-to-income ratio

• Property considered in a rural area

• Household monthly income is within allowed maximum limit per your area

Whichever loan product you feel is a good fit for your situation, it is always important to first speak with a loan officer, as he or she may have questions you might not have considered.

FHA Loan:

Another good option, the FHA loan is particularly appealing for first-time homebuyersbecause of the low down payment — 3.5% minimum. As with the VA Loan, the FHA does not lend the money but guarantees that some of the money will be repaid if the borrower were to default.

Practically anyone can get an FHA loan because there are no income limits. But there are limits on the loan amount, which directly relates to your geographical area; this is one reason that not everyone feels an FHA loan is for them.

Some requirements in order to qualify for an FHA loan include a reasonable debt-to-income ratio and decent credit.

A few highlights of the FHA loan are:

• Attractive interest rates

• Looser qualification standards

• Closing costs may be covered

• Low down payment — as low as 3.5%

Very Special Thanks to James Kelley for the Guest Post. James Kelley blogs on veteran’s issues and real estate in the United States at VA Benefit Blog .He also works for VA Mortgage Center, proudly serving American military families as the nation’s premier VA lender.