Government Home Loans

 

The Federal Government and the State of Oregon both offer special programs to assist a wide variety of the public in obtaining mortgage financing. Below you will find a brief snapshot of some of the many programs available.

 

 

Veterans Administration (VA) -

 

Ever since President Roosevelt signed the Servicemen's Readjustment Act (eventually know as the GI Bill) into law in 1944, veterans have had access to one of the most beneficial loan programs around.

 

VA loans are guaranteed by the Department of Veterans Affairs and can be used to purchase a primary residence that is a single family home, including a townhouse or condominium unit in a VA approved project, to build a home, and purchase and improve a home. Loans are assumable under certain conditions and do not have a prepayment penalty.

VA financing is designed to benefit veterans of the armed services, those currently in active duty or the reserves, and their spouses. In order to qualify for a VA loan veterans must be eligible as defined by the Department of Veterans Affairs. Veterans can qualify to put zero down on a loan up to $417,000. VA Fixed Rate Loans are full documentation loans. Before closing, a funding fee must be collected from the borrower and can be financed into the loan. Funding fee exemption is possible upon proper verification of disability.

 

Highlights of the VA Loan Program:

  • Borrow 100% of the sales price, up to $417,000
  • Sellers can pay entire balance of closing costs
  • Fixed rate and adjustable rate mortgages available
  • No private mortgage insurance (PMI) required
  • Single loans with low rates
  • Flexible credit qualifying requirements

 

Federal Housing Administration (FHA) -

 

The Department of Housing and Urban Development (HUD) offers a flexible and popular type of home loan known as FHA Section 203(b), referred to as an FHA Loan.

 

Highlights of the FHA Loan Program:
  • No minimum credit score requirements
  • Individuals with no prior credit history can be eligible
  • Low down payment options - as low as only 3% of the purchase price
  • Sellers can pay entire balance of closing costs
  • Required down payment can be gifted by family, employers, even grants from state agencies!
  • Lower Private Mortgage Insurance (PMI) requirements than conventional loans

Though commonly thought of as a "First Time Homebuyer's Loan", FHA Loans are available to anyone who meets the requirements for qualification.

 

 

Down Payment Assistance Programs -

 

Many organizations offer programs that will contribute a part or all of a required down payment for a home loan. These funds are delivered through State and Federal agencies and non-profit groups. Often times the programs are tailored for First Time Homebuyers or individuals with specific income levels.

 

The list of available programs is quite long and can be quickly narrowed down based on your specific situation. Other factors like property condition and location, terms of the sale, and desired loan program can help determine which Down Payment Assistance Program is available for you.

 

The best way to answer those questions and learn more is to contact a Landmark Loan Consultant today!