Government Mortgages - American Financial Resources

The United States Government insures several types of mortgage loans, making it less risky for lenders to offer them, and providing better pricing and terms to borrowers (thank you taxpayers!) These programs benefit more than just those who obtain government home loans as their availability strengthens both the housing market and the overall economy. They also put the American dream of owning a home within reach for many who might not otherwise qualify, because there are programs available for those with low credit and little money for a down payment.

Types of Government Loan Programs

The three main types of government insured mortgages are:

FHA Loans - Backed by the Federal Housing Administration, FHA loans can be used to purchase or refinance a home, and can be used to finance up to 97.5% of a property's value (3.5% down payment required for a purchase.) The credit score requirements are generally lower than they are for a conventional loan. American Financial Resources is one of the top National FHA lenders - you can be assured you are working with the best.
VA Loans - VA Mortgages are insured by the Department of Veterans Affairs and are available to many active duty military personnel and veterans of the US Armed Forces. 100% financing is available, and VA loans can be refinanced simply if rates lower through a VA streamlined refi.
USDA Loans - Guaranteed by the US Department of Agriculture, USDA Rural Housing Loans are intended to help people buy properties in the rural areas of the Country. You may be surprised to learn that some areas near you that you may not consider "rural" will qualify, as the growth of suburbia sometimes outpaces updating of the USDA maps. USDA loans allow you to finance 100% of a home's value, and have excellent rates.

When purchasing a property that will be financed with a govt mortgage it is often allowable to have the seller contribute towards the closing costs. Many sellers are willing to do this to make a sale in this strong buyers market, and it will significantly lower the amount you need to bring to closing. Talk to your real estate agent about negotiating this into your purchase agreement.

Government Loan Process

You may have heard that government mortgages are more complicated, and take considerably longer to process than conventional loans, but this is not at all the case. There may be a few additional forms to complete and items to take care of, but your AFR loan consultant will go over it all up front and set the loan up for success, ensuring a smooth process. For example, if you are applying for a VA loan you will need to obtain your certificate of eligibility, and your loan consultant can go over with you how to get it so you can get to work on that right away at the same time the other aspects of your application are underway, such as ordering the appraisal. Work with a professional at AFR and eliminate the stress of the mortgage transaction! Call us at 800-316-9508 or request a quote today.

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