Comparing VA Home Loan Programs And FHA Home Loan Programs

VA home loan programs and FHA home loan programs have much in common. Both try to make affordable home ownership available to people, but there is a big difference to be found between the two. VA home loan programs are available specifically for those who served in the armed forces. By looking into both of the programs, mortgage-seekers can find a federal program to help with their home financing. Typically, if one program doesn’t work, the other may.nnnAbout VA Home Loan ProgramsnnnVA home loan programs are made for qualified veterans as part of the benefits extended after serving in the military. But in order to qualify for a VA home loan programs, a veteran must meet specific criteriannn•A veteran must have a Certificate of Eligibility from the Department of Veterans Affairsn•A veteran must have good credit (usually for the past two years) and an adequate credit scoren•A veteran must have enough income to repay the loann•A veteran must meet debt-to-income requirements as outlined by the VA home loan programsn•The home must be used as a residence after closing or renovations are completennnSome other individuals also have VA home loan programs available to them, including:nnn•National Guard or Reserve members who meet specific requirementsn•Widowed spouses of servicemen who died in duty, who have not remarriedn•U.S. citizens and their spouses who served with an Allied country during World War IInnnBenefits of the VA home loan programs includennn•No down payment loansn•Good fixed and adjustable interest rates, regardless of credit historyn•Lengthened and flexible terms of 15-30 years or moren•No prepayment penaltyn•Assistance during financial hardshipn•Protection and warranty against discrimination and poor buildingsnnnBut some who have just limited time in the armed forces or who cannot qualify for VA home loan programs may still be able to work with the FHA home loan programs. Also, those with no military experience can work with the FHA home loan programs.nnnAbout FHA Home Loan ProgramsnnnFor those who can’t take advantage of the VA home loan programs, there are FHA home loan programs available. While the FHA home loan programs do not have many advantages over the VA process, there are some. With the FHA programs, more than half of the loan is insured, a benefit not available in the VA, which should be considered by veterans.nnnFHA home loan programs are similar to VA loans in many other ways, aside from the insured benefit. FHA home loan programs also offernnn•Low down paymentn•Federal security, which can mean better terms from lendersn•Flexible termsn•Adjustable payment optionsn•Good interest rates and affordable paymentsn•Refinance options for existing loansnnnQualifying borrowers can benefit from either the VA home loan programs or the FHA home loan programs. By meeting the requirements of each program, borrowers can make their home ownership goals a reality with good terms and through these good programs.nn