March 27th, 2015 1:24 PM by Leonard Silvestri
Government loans consists of a wide range of loans processed through the government. These programs normally offer extended features for specific loan products and aim to provide fair lending opportunities to the greater population of the United States. Government loans can include business loans, student loans and home loans. The home loan program gives citizens access to loans they may be eligible for with full disclosure of the terms and policies.
Both loans hold similarities in terms of their purpose for assisting citizens in purchasing homes. However there are also very distinct differences between the two loan programs. FHA loans are insured by the Federal Housing Administration, which is the basis for the name of the loan program. These loan products are targeted to help families within lower income brackets and less access to disposable cash for the use of purchasing a home. There are many benefits for utilizing FHA financing for consumers such as the low down payment requirement, flexible underwriting, the ability to finance closing costs and more.
VA loans are different from FHA loans as they are specifically purposed as benefits for veterans and made eligible solely through the U.S Department of Veteran Affairs. These loans usually do not have a down payment requirement and receive significantly lower interest rates than traditional loan programs. VA loans also offer the benefit of prepayment without penalty and negotiable interest rates.
If you would like more information regarding either of these government loan programs or would like to explore your home buying options contact our office today. Call 561-395-4264 to speak with our mortgage specialists and let’s discuss your possibilities for homeownership.