Government loans are great loans provided to assist people in securing home financing at affordable rates.  In our Mckinney, Texas market a large amount of the available homes are eligible for these programs.  Here are some brief explanations of 3 popular government programs.


FHA loansleft

 

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her home loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

An FHA loan is insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD). Available to all buyers, FHA loans are particularly helpful to borrowers who are seeking a low down-payment, as little as 3-1/2 of the purchase may be required.  Here are some other benefits:
• You can qualify with a higher percentage of debt-to-income than permitted on conventional loans
• More flexible credit requirements
• A future buyer may be able to assume your mortgage
 

VA Loansleft

 

A VA loan is guaranteed by… to eligible veterans.  In some cases, no down payment is required. 

Other benefits of a VA Mortgage:

•             Lower interest rates

•             No mortgage insurance

•             A future buyer may be able to assume your mortgage 

 

USDA or Rural Development Home Loans 

 

A USDA or Rural Housing Development loan doesn’t mean you have to live out in the “sticks.”  There are many communities that still qualify as “rural.”  The USDA also offers loans with no down payment. 

Contact us to help you decide what loan type works best for you.

 

            Appy Now