Almost 20% of all loans are either insured or guaranteed by an agency of the federal government. These mortgages are called government loans. These loans offer such attractive features as little or no cash down payments, long loan terms, no penalties if you repay your loan early and lower interest rates. However these loans aren’t for everyone. Government loans are targeted for specific types of home buyers, have relatively low maximum mortgage amounts, and require a longer time to process and close. US equity is an approved FHA and VA lender, apply today to see if you qualify for a government loan.

FHA: Federal Housing Administration was established in 1934 during the depths of the Great depression to stimulate the housing market. FHA loans help low to moderate income individuals get mortgages by issuing federal insurance against losses to lenders who make FHA loans. The FHA is not a money lender. Borrowers must find an FHA approved lender such as US Equity to grant a mortgage that the FHA then insures. Due to their complexity, not all lenders choose to participate in FHA loan programs.

VA: Department of Veterans Affairs, congress passed the serviceman’s Readjustment Act, commonly known as the GI Bill of Rights, in 1944. One of its provisions enables the VA to help eligible people on active duty and veterans buy primary residences. Like the FHA, the VA has no money of its own. It guarantees loans granted by conventional lending institutions such as US Equity.

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