Four Types of Government Home Loans For Your Housing Needs
Owning a home is everyone’s dream, especially for the Americans. It is the most expensive buying decision for them as their lifetime investments see a full involvement in the purchase of a house. To own a home, one either has to make it through their hard earned money or get it through home loans.
When it comes to home loans, it takes almost 15-30 years to pay off the amounts. And more often, many willing home buyers stay away from making any home purchasing decisions. Just because, they think these two are the only options for home buying. However, much to your surprise, you can find many other and lesser-known home buying options. You must know your eligibility to suit the conditions of the loans. Let’s explore various home loan options for your situations.
Rural Development Loan
Amongst various government-sponsored loan schemes, Rural Development loan seems feasible for the applicants. You do not need to pay any down-financing for the loans. And, with the reimbursement money, you can make repairs to your existing and primary home. Other conditions for the eligibility include having a residence in a rural territory, and you should be employable.
The United States Department of Agriculture (USDA) ensures to make home ownership available to the moderate or lower income group of families. The Rural Development Loan aims at improving the quality of lives in the rural areas through affordable home loans. And hence, it envisions promoting prosperity amongst them through affordable housing programs. To check your eligibility, you can log on to their website.
Federal Housing Administration 203 (A) Loan
FHA 203 (A) comprises two types of loans. They are regular and streamlined. As with regular FHA 203 (A) loan, you can use the loan amount to purchase a fixer-upper property or a house that requires some improvements and moderate repairs. While streamlined loans help you purchase a structure, which does not require any improvements. Either type of FHA 203 (A) can be used for the purchase or refinance.
It Entails To Some Of The Key Eligibility Criteria
- No investors can avail the benefits of the loan scheme. The purchaser of the fixer-upper property has to be owner-occupants.
- Single family with four to five members
- Existing structure must be in place for at least one year
- Improvement and repair signs must be visible on the property
- FHA authorized condos
- Improving accessibility for the physically challenged individuals
This loan option comes with a long-term fixed or adjustable rate loan. To know more about the scheme and eligibility, you can find information from their Insuring Federal Housing Authority.
VA Home Loans
The United States Department of Veteran Affairs establishes VA loan program for veterans to purchase their own homes through VA home financing. VA loans are acceptable against default as set by the Department of Veteran Affairs. The department also does not disburse the home financing for the veterans directly. They distribute it through the Government National Mortgage Association. The organization also checks the eligibility criteria for other loan schemes.
Under VA loans, you can get 100 % home financing for a home, you are willing to purchase. To be eligible for the loan, you must show a certificate of your association with the military service. Other than this, the borrower must be a widow or widower of a veteran.
If you need a cash flow desperately, you can consider the reverse mortgage loan. Through this loan, you will get amount against the value of your home. The amount will be in the form of a line of credit or monthly payments. No repayment is required to pay off until the borrower dies, or the sale of the property. All you need to do is you must be 60 years of age. However, this type of loan is quite risky as the permanent loss of the house is unavoidable.
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