Government Home Loans: FHA, VA, and USDA Loans

Government-insured loans usually offer low down payments and below-market interest rates, as well as easier credit and income guidelines than conventional loans. That may make them a good option for first-time homebuyers, for borrowers with low to moderate incomes, or those with limited cash or minor credit problems.

• Federal Housing Administration (FHA) loans: FHA loans allow qualified borrowers to purchase a home with a down payment of as little as 3.5% of the purchase price. There are several types of FHA loans. In addition to fixed loans and adjustable-rate mortgages (ARMs), FHA loans also include graduated payment mortgages and growing equity mortgages for borrows who expect their monthly earnings to increase over time. In addition, the Energy Efficient Mortgage (EEM) program allows borrowers to include the cost of energy efficiency improvements into their FHA loan.


• Veterans Administration (VA) loans: VA loans offer flexible credit guidelines and often do not require a down payment. They are available to military service veterans, reservists and active-duty service members.


• USDA, or the United States Department of Agriculture, designed this loan to pull the population out of large metropolitan cities and into surrounding areas. USDA eligible properties are typically located outside of city limits, in suburbs or rural areas. The USDA Guaranteed Loan is not meant to finance farms rather they are geared towards the standard single-family home.

We can tell you more about government-sponsored loans and refinancing options.

Learn more from the Federal Housing Administration

Learn more from the Veterans Administration

Learn more from the USDA Rural Development