FHA Home Mortgage Loans

FHA (Federal Housing Authority) Home Mortgage Loans is a program run by government, it was founded in 1934. The purpose behind launching this program was to let more and more people to apply and qualify for this loan. These loans are provided to the people by the private lenders. The most important thing about these loans is that any citizen of United States can apply for these loans. The interest rate for FHA Home Mortgage Loans is much lower than that of any type of conventional loans. The down payment for these loans is just 3% of the total cost of home. Even the monthly installments do not exceed 30% of the monthly income of the borrower.

The amount given to you for FHA Home Mortgage Loans is insured, therefore any default in the repayment does not make lender foreclose your property. The closing cost of these loans is much lower than conventional loans which average two and one-quarter percent.  The amount you can borrow is decided by Federal Housing Authority depending on the value of the home you are going to buy. Moreover, if you decide to sell your home, the buyer will easily take over FHA Home Mortgage Loan because of its easy monthly installments.

VA Home Mortgage Loans

VA Home Mortgage Loans are tailored by Department of Veteran Affairs especially for service men and women as well as for selected government employees. It is as easy as conventional loans to qualify for these loans so that more and more people can avail the facility of these loans and can start their new life in new home. VA Home Mortgage Loans are guaranteed that the private lender will be repaid even if borrower makes default on repayment. These loans are consisting of small down payments, better term on both fixed and adjustable home mortgage loans. For adjustable rate loans the rate increase only 1% annually and only 5% for the whole life of the loan.