Guest post by James Kelley
www.VAbenefitblog.com

Owning a home in the same place where historic battles took place and parks as old as the United States itself exist can be a true treasure to pass down to one’s children.

Buying a home, however, can be a stressful process, especially if you go the conventional route. And if we’re talking about U.S. Veterans, men and women who have done so much for the country, the last thing they need is hassle.

But even other government-backed programs are saving everyday people from the burden of conventional loan processes. Programs like the VA, USDA, and FHA mortgage plans give people the chance to buy a home without the stress and heavy expense. How? All three programs have great perks and offer lower rates. Let’s take a look at them.

FHA LoanThe Federal Housing Administration insures the FHA loan. Unlike the VA and USDA loan, the FHA has no income limits or career type requirements. It’s open to anyone and everyone.

An FHA loan has lower closing costs. The down payment is about 3.5 to 5%, which is about three times lower than conventional loans. All of the government-backed programs allow families to use gifted or borrowed money to make payments or put towards a down payment, if applicable. Conventional loans do not allow money from sources in which a proper paper trail cannot be kept.

The FHA program is a favorite among many buyers especially low to middle income families because the credit and debt requirements are not super strict. With the FHA, it is feasible for anyone with past financial errors to work his or her way back up to a decent score and obtain the loan.

USDA LoanThe U.S. Department of Agriculture secures USDA loans. Only homes within rural localities can be bought with this mortgage program. Check with a USDA lender to see which areas around Savannah, GA are eligible for the program.

The USDA, like the VA program, does not require a down payment. Other perks include 100% financing, no monthly mortgage insurance fees, and the actual mortgage payment is sometimes lower than the FHA loan. One slight downfall is the USDA does set income limits to determine eligibility.

VA LoanMany veterans do not know about the growing popularity of the VA loan. Secured by the U.S. Department of Veteran Affairs, it offers amazing deals and an easy application process.
The rates are low, and there is no money down or monthly mortgage insurance.

VA loans can be guaranteed up to $729,000, in some areas. The average loan is about $207,000. There are no upfront fees, except for a possible appraisal fee, though having a service-related disability allows the lender to waive funding fees. The buyer and the lender, however, will still have to bring in a certified home appraiser as per the VA requirements.

To qualify, the service member must be able to prove that they served in the military for 90 days during wartime and 181 days during a time of peace. He or she must have been honorably discharged. Veterans, active duty personnel, reservists and National Guard members can qualify. Also, some surviving spouses might be eligible for the VA loan.

The Next StepTalk with a lending counselor today. They can help you decide which option will save you the most money.