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Loan Programs
All mortgage plans can be divided into categories in two different ways. Firstly, conventional and Government loans. Secondly, all
the various mortgage programs may be classified as fixed rate loans, adjustable rate loans and their combinations.
Conventional and Government Loans
Any mortgage loan other than an FHA, VA or an RHS loan is conventional one.
FHA Loans
The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers
various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans.
FHA loans cannot exceed the statutory limit. Go to FHA Programs page to get more information.
VA loans
VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home
loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional
loan. Lenders generally limit the maximum VA loan to $203,000.
RHS Loan Programs
The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture guarantees loans for rural residents with minimal closing costs
and no down payment.
Fannie Mae which is part of HUD guarantees securities backed by pools of mortgage loans insured by these three federal agencies
- FHA, or VA, or RHS. Securities are sold through financial institutions that trade government securities.
State and Local Housing Programs
Many states, counties and cities provide low to moderate housing finance programs, down payment assistance programs, or programs tailored specifically for a first time buyer.
Conforming Loans
Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie M
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