Home Loan Financing Options
There are many financing options when you prepare to purchase a home, each offering its own specific benefits and characteristics. When looking at these options, we at VA the Fairway usually find that for most Veterans, active duty service members and select spouses a VA Home Loan offers the best benefits and advantages.
VA Home Loans
The Veterans Administration (VA) helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of their mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
VA Home Loans are provided by private lenders, then the VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
For more information on VA benefits visit the government VA Home Loans website which this information was excerpted from.
The VA Home Loan is also an excellent option if you are looking to refinance an existing home loan. Learn more about refinancing in our section on VA Refinancing
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The Federal Housing Administration (FHA) Loan can be useful for a number of people, including veterans. FHA loans offer a multitude of options for both Purchases and Refinances including: Fixed Rate Mortgages, Adjustable Rate Mortgages (ARM), Energy-Efficient Mortgages, Rehabilitation Mortgages ('Rehab Loans' for "fixer-uppers", or home improvements), and more. A FHA Loan comes with a form of mortgage insurance that can be paid either all upfront or in monthly payments. Like a VA home loan, FHA loans also require an upfront funding fee. Our VA the Fairway Home Loan Specialists are well versed in FHA loans and can assist you in determining if this is the right loan for you. For additional information on visit the FHA Resource Center.
USDA loans are overseen by the U.S. Department of Agriculture (USDA) for home purchases by low and moderate income families living in rural areas. In order to qualify for this loan, the home must be located in a predefined eligibility zone. USDA loans typically have no required down payment but carry both an Upfront Guarantee Fee and an Annual Fee. The USDA guarantees up to 90% of the note amount to approved lenders. If you would like to find out if a USDA Loan might be right for your needs, please contact one of our VA the Fairway Home Loan Specialists to discuss the benefits of this type of loan. Learn more about the USDA home loan program here.
Conventional Loans usually require a minimum 3-5% down payment and may also carry private mortgage insurance if you finance more than 80% of the value of the home. Conventional Loans requirements for credit are typically stricter than other loan types as they do not come with a government-backed loan guarantee. Conventional Loans have no Funding Fee and are not required to have mortgage insurance with at least a 20% down payment. Talk with one of our VA the Fairway Home Loan Specialists to find out if a Conventional Loan will meet your specific home-buying or refinance needs.