One of the most widely used and important is the Veterans Home Loan Program, which provides assistance in financing a home loan. There is also another government-backed mortgage loan that veterans may want to consider as well. This government-backed loan is the FHA Home Loan Program.
If you are an active duty member of the armed forces, a veteran, or even the current or surviving spouse of a veteran, you may want to compare the pros and cons of the VA Home Loan Program and the FHA Home Loan Program.
You should be fully informed about both loan programs before you buy a home because it is an important decision and making the wrong decision can cost you thousands of dollars in the future.
VA Home Loan Program VS FHA Home Loan Program
VA home mortgages are similar to many conventional home mortgages, but have many great benefits not found in conventional loans, such as: No down payment required, your credit score may be lower than required for conventional loans, closing fees may be reintroduced into the mortgage, making it a 100% finance loan.
The FHA Home Loan Program is the most popular of the non-veteran home loan programs, and its popularity is growing due to the current tight mortgage market.
They have some of the same advantages as VA home loans, such as: they're easier to refinance, they're more forgiving on credit scores to qualify, and certainly a lower down payment than conventional loans. There are no income limits for FHA loans, but there are limits on how much a person can borrow and it varies in different areas of the country.