What are the advantages and disadvantages of
government loans?
There are two main types of government loans: VA, sponsored by the
Veterans Administration, and FHA, sponsored by HUD. VA loans are only available to qualified Veterans. Therefore, they
are not an option for many people. However,
if you are eligible for a VA loan they can be a tremendous benefit.
VA loans require zero down payment and no mortgage insurance.
They are currently available only as fixed rates, no adjustable.
The mortgages are assumable to qualified future purchasers of your
home, which can be a great selling tool in times when interest rates are
higher.
FHA loans are available to any qualified borrower.
An obvious drawback to the program is the paperwork, which is long
and detailed. However, Landmark Mortgage can help you with the government forms, making the confusing
information easy to understand. FHA
loans are great for people purchasing multi-family properties, because the
down payment requirement is generally only 5% of the sales price, even on
three and four family units! Furthermore, 93% of the rental income from
the units not owner-occupied can be used to help you qualify for the loan.
FHA offers both fixed and adjustable rate programs.
The adjustable are particularly good, as they offer low yearly and
lifetime caps (caps are limits on the amount that the interest rate can
increase).
Landmark Mortgage
specializes in assisting individuals with obtaining
VA and FHA loans, whether for purchase or refinance. We can advise you on the best
approach and help you with your specific loan requirements.
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