But what are they, and how do you qualify?
What Are Government-Insured Loans?
Government-insured loans are those guaranteed by the federal government. These types of loans help assure lenders that they’ll get their money – at least part of it – even if you default on your payments.
The Federal Housing Administration’s mortgage insurance program, managed by the Department of Housing and Urban Development, is available to all borrowers (not just first-time buyers, like some programs are) in the form of an FHA loan. The program allows you to make a down payment as low as 3.5 percent of the home’s purchase price, but you’ll have to pay for mortgage insurance (and that’ll raise your monthly payments).
If you’re an eligible veteran of the U.S. Armed Forces (or a qualifying dependent), you may be able to get a VA loan that’s backed by the Department of Veterans Affairs. You can buy a home with no down payment if you’re using a VA loan – and you can do it without paying for private mortgage insurance.
The U.S. Department of Agriculture backs USDA loans, which are only for rural borrowers who meet income requirements. In order to qualify, you must have an income no higher than 115 percent of the adjusted area median income, or AMI. (Check yours here.)
Do You Need to Talk to a Lake City Realtor® About Buying a Home?
Whether you’re buying a house, a farm, or a tract of timberland, we can help you find something that’s just right for your needs.
Call us at 386-243-0124 or contact us online. We may be able to help you find the perfect property in Lake City or the surrounding communities.
In the meantime, check out our:
- Waterfront residential
- Waterfront land
- Bank-owned and foreclosures
- Short sales
- Paved road frontage
- Non-deed-restricted land
- Wooded oak tree land
- Land for land home combo