Government Insured Loans | Loan Programs Insured by Federal Goverment

Government-Insured Loans

Government insured or guaranteed home loans are mortgages in which the U.S. Government will repay the lender if the borrower stops making their mortgage payments. This protects the lender form substantial loss if the borrower defaults on the loan.

Most conventional lender guidelines require the borrower to qualify and purchase private mortgage insurance (PMI) if their down payment is less than 20% of the loan. The case for many first time and low to moderate income home buyers is that they can’t afford a 20% down payment, which then means they have to qualify and purchase private mortgage insurance. Qualifying for private mortgage insurance for these borrowers can be difficult due to poor credit ratings or income and debt restrictions.

In order to help this segment of the market obtain financing, the Government offers different programs though the Federal Housing Administration (FHA), the Department of Veterans’ Affairs (VA) and the Department of Agricultures’ Rural Housing Service (RHS). Each of these programs will have its own specific qualifying requirements which are usually more forgiving than conventional loan requirements.

Federal Housing Administration (FHA)

Anyone may apply for an FHA loan. The qualifying requirements are somewhat flexible and there are low down payment options for borrowers. Some of the loan closing cost may be financed into the loan amount as well. The guidelines can change frequently so if you are interested in finding out if an FHA loan is best for you please fill out the simple form below so we can put you in contact with a Boise IQ Approved FHA loan specialist.

Department of Veterans’ Affairs (VA)

VA Guaranteed mortgages are available for eligible veterans. Veteran homebuyers are found to be eligible based on days of active duty and other service requirements which can be discussed with a VA loan specialist. The veteran will have to obtain a Certificate of Eligibility (COE) and must occupy the home they wish to purchase. Mortgage lenders can help with obtaining a Certificate of Eligibility on request. If you are interested in talking with a VA loan specialists about qualification requirements, please fill out the simple form below so we can put you in contact with a preferred Boise IQ VA lender in your area.

Department of Agriculture Rural Housing Service (RHS)

RHS home mortgage loans are insured by the government for low to moderate income families looking to buy and occupy a home in designated rural areas. Like other Government insured loans these are nice because they do not require private mortgage insurance. If you are looking to buy a home in a rural area and would like more information or to find out if you qualify for this program in your area, please fill out the form below to speak with the best RHS lender in your area.