In today’s market, purchasing a home can be an intimidating process – especially for the first time buyer. Interest rates are at an all time high and owning a home can often seem like a far-fetched fantasy for many prospective home buyers. Fortunately, government house loan can make that dream a reality and obtaining a loan is easier than ever. Government house loan are available at the Federal and state levels.
Federal government house loan are administered primarily through the US Department of Housing and Urban Development. The Federal Housing Authority, an arm of HUD, has been around since 1934 and provides incentives for private lenders to provide mortgages for people who otherwise wouldn’t be qualified. The FHA does this primarily by backing the loans with Federal money, reducing the risk of loss to the private lender. The end result is that it becomes easier for someone who has little or no credit history to receive a loan to purchase their home because the FHA provides the mortgage insurance on the home themselves.
A government house loan can be a great way to secure a mortgage for your first home. There are also loans available to renovate your home to make it more environmentally friendly or for assistance when purchasing a “fixer-upper.” When obtaining a loan for a fixer-upper, the government will allow you to include the cost of renovations in your original mortgage amount. An FHA loan also provides several benefits over a more traditional loan, such as lower monthly payments, interest rates, closing costs and reduced credit history requirements. In order to obtain an FHA backed government house loan, one must contact an FHA lender.