Some good information on FHA and VA loans no matter where you live.
Home Loan Products To Consider: Financing Southwest Montana Homes
In lieu of conventional lending programs there are many other, more flexible programs available to help those desiring to achieve homeownership. Out of the many home loan programs available, the VA, FHA, and USDA programs are the more popular as each provides flexible eligibility requirements and competitive interest rates, in addition to other numerous benefits.
All a potential homeowner has to do is simply pick whichever program best suits their needs, and, if they are eligible, begin enjoying a better home buying experience that will require less out-of-pocket expenses.
The VA Loan
Are you or were you a member of the military? Consider a VA loan. A VA home loan is a loan partially backed by the Department of Veterans Affairs, and is available to veterans or active duty service members. Because the VA ensures part of each loan, borrowers receive flexible and competitive loan terms making it ideal for any prospective home buyer. Benefits of the program include:
· zero down payment
· no required mortgage insurance
· flexible debt-to-income ratios
The FHA Loan
Looking to purchase your first home, or just wanting to update your current home? An FHA loan may be the best option for you. The FHA home loan program offers a variety of different programs to help borrowers purchase their first home, renovate a fixer-upper, or even update their current home to be more energy efficient. FHA even has a financing option for manufactured housing and mobile homes. Benefits accompanying a FHA loan include:
· 3.5% down payment
· low closing costs
· down payments can be made in the form of a gift
The USDA Loan
Looking to live outside city limits, or in a more rural area? A USDA loan might be for you. Through its Department of Rural Development, the USDA provides two types of loans: a Guaranteed Housing Loan, and a more flexible option, the Direct Housing loan, for low-income households. In addition to offering the comforts of country living, a USDA loan offers:
· Zero down payment
· No mortgage insurance
· flexible credit guidelines
All of these home loan programs provide potential borrowers, even those with imperfect credit, with the opportunity to purchase a home. Over 75% of each of the program's participants would not have been able to achieve homeownership though a conventional loan.
Although the programs all offer flexible eligibility requirements, many approved lenders will desire a mid-range credit score of at least 620. Even if a potential borrower is concerned about their credit or their eligibility, they are still encouraged to apply as borrowers with a history of foreclosure and/ or bankruptcy have been approved in the past.
(Thanks to: Brandon Fischer is a blogger for VA Benefit Blog, a blog dedicated to keeping veterans up to date with all their VA benefits.)