Who doesn’t dream of owning a home? Many singles and couples want to own a home but never make it past the dream phase. Fortunately, you do not need to tackle the process alone. The Department of Housing and Urban Development (HUD), Veterans Affairs (VA), and U.S. Department of Agriculture (USDA) have several programs to help potential homeowners to afford home loans. These programs are available to first-time homebuyers, public housing tenants, active duty service members, veterans, and low-income families.
FHA Home Loan
The Federal Housing Administration is a government agency responsible for insuring and underwriting home loans. The agency has several loan programs for first-time buyers and seniors 62 or older. The benefits of FHA loans include low closing costs, low down payments, and easy qualifying.
If you qualify for an FHA loan, you may get by with only a 3.5% down payment of the purchase price. FHA loans are available for 1- unit properties, single- and multi-story housing, and factory-built and mobile homes on land or in a mobile home park.
By insuring the loan, the FHA can help homebuyers get better deals.
HUD Homeownership Voucher
Homeownership Vouchers are available to families living in public housing, low-income, or first-time homebuyer. To qualify, you must meet a minimum income requirement set by your local Public Housing Agency (PHA), you or an adult living in your home must be employed full-time (for one year or longer), and complete HUD’s Housing Counseling program.
VA Home Loan
VA home loans are available to active duty service members with a specific length of service, surviving spouses, and veterans. To meet eligibility, you must have a valid Certificate of Eligibility (COE), satisfactory credit, and sufficient, reliable income.
- Home loan programs offered by the Veterans Affairs include:
- Purchase Loans and Cash-Out Refinance
- Interest Rate Reduction Refinance Loan (IRRRL)
- Native American Direct Loan (NADL)
- Adapted Housing Grants
The VA works with lenders to provide eligible applicants better deals by guaranteeing a portion of the loans. To apply for a VA loan, visit benefits.va.gov.
The USDA Rural Development has more than 50 financial assistance programs for purchasing and repairing homes. The loans are available for single-and multi-family housing 2,000-square feet or less. To determine if you meet eligibility visit usda.gov.
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