For Sale by Owner News and Articles
What Are FHA and VA Loans?
FHA loans are insured by the U.S. Department of Housing and Urban Development, designed to make housing more affordable for first-time homebuyers and buyers with low to moderate incomes. With FHA, eligible buyers can purchase a home with a down payment of little as 3% of the FHA appraisal value or the purchase price, whichever is lower. Qualifying standards are not as strict as conventional loans, although property standards may be stricter. Both fixed and adjustable rate FHA loans are available, and, in most states, FHA loans can also be used for refinancing.
VA loans are government-insured loans administered by the U.S. Department of Veterans Affairs. Designed to make housing affordable for U.S. veterans, VA loans are available to veterans, reservists, active-duty personnel, and surviving spouses of veterans with 100% entitlement.
VA loans are fixed rate loans with competitive interest rates. Eligible buyers can purchase a home with no down payment, no cash reserve, no application fee and lower closing costs. And, in most states, VA loans are also available for refinancing.
Many lenders are approved to handle VA loans. To find out if you are eligible, contact your nearest VA regional office.
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