Popular Mortgage Loan Programs For Home Buying

Application for Popular Mortgage Loan Programs

There are quite a few mortgage loan programs for home buyers to choose from. Knowing what mortgage programs are out there will help you make a better decision about what mortgage you want when buying a home.

Down payment assistance programs can be used in combination with any of these mortgages so make sure you check with your loan officer about these programs in your area.

Fannie Mae HomePath Mortgage Program

• The Fannie Mae HomePath Mortgage Program is a new program recently launched by Fannie Mae to help sell Fannie Mae and HUD REO homes – foreclosed homes. There are only about a dozen or so mortgage lenders across the US that are approved to offer this program. Essentially the program allows a home buyer to purchase a Fannie Mae REO Home (repossessed home) at a negotiated price with no appraisal and 3% down payment. The down payment can come from a variety of sources such as a gift from a relative or a down payment assistance program or a short term tax credit loan program that is perhaps offered by your state.

FHA Home Loans

• There is much to say about FHA Home Loans. An FHA loan is a great loan for first time home buyers as well as for those home buyers who have less than perfect credit with credit scores above 620. Many down payment assistance programs for first time buyers can be used in conjunction with an FHA mortgage. FHA Home Loans are a government mortgage program.

VA Mortgages

• VA Mortgages are only available US Military Veterans and their spouses (if the Vet is deceased). VA Home Loan underwriting guidelines are fairly flexible like FHA home loans with the most important credit history being the past 12 months. VA mortgages require no down payment and can allow a seller to pay up to 6% of the sales price towards the purchasing Vet’s closing costs. VA Home Loans are a government mortgage program.

USDA Rural Housing Program

• A true gem of a mortgage program if you plan on living in a rural designated area. The USDA Rural Housing Loan Program allows for 100% financing and flexible underwriting guidelines. It also allows for up to 6% seller assistance towards closing costs and is available to be used with many federal and county down payment assistance programs. USDA loans are a government mortgage program.

Conventional Mortgage

• Conventional mortgages from Fannie Mae and Freddie Mac have been around a long time. These are the typical 30 year fixed interest rate mortgage or the adjustable rate mortgage. These mortgages generally required higher credit scores above 660 as well as 5% down payment to qualify.