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Archived News Article: Information may be out of date
February 26, 2014

Help for Homebuyers and Homeowners

Help for Homebuyers and Homeowners
Help for Homebuyers and Homeowners

Are you in the market to buy a home? Or are you interested in lowering your monthly mortgage payments by refinancing you home? provides information on several federal resources that may ease the process.

Along with advocating for homeowners and for fair housing practices, the U.S. Department of Housing and Urban Development (HUD) facilitates loans for first-time mortgages. While HUD does not lend money directly to buyers to purchase a home, Federal Housing Administration (FHA) approved lenders make loans through a several FHA insurance programs.

Benefits to FHA Loans

According to HUD, there are several benefits to using an FHA approved lender. Just a few of the many benefits include:

  • Lower costs: FHA loans have competitive interest rates because the federal government insures the loans. Make sure to always compare an FHA loan with other types of loans.
  • Easier to qualify for: FHA insures your mortgage therefore lenders may be more willing to give you loan terms that make it easier for you to qualify.
  • Work with less than perfect credit: You do not need a perfect credit score to get an FHA mortgage. Even if you have had credit problems, such as bankruptcy, it may be easier for you to qualify for a FHA loan than a conventional loan.
  • Low down-payments: FHA loans have a low 3.5% down-payment. Money for your down-payment can come from a family member, employer, or charitable organization as a gift.

In order to initiate the loan application process, visit the FHA Resource Center to contact an FHA approved lender. If you are already a homeowner and would like to refinance your home, the U.S. Department of Treasury and HUD have partnered to create, which may be a helpful place to learn more about your options.

For more information on housing loans, be sure to check out the following loan programs:

Basic FHA Insured Home Mortgage

The Basic FHA Insured Home Mortgage program can help individuals buy a single-family home. The requirements for this program demand that home buyers or current homeowners who intend to live in the home can meet the cash investment, mortgage payments, eligibility and credit requirements, can apply for a home mortgage loan through an FHA-approved lender. To learn more about this program and how to apply, visit the Basic FHA Insured Home Mortgage program page.

Rural Housing Loans

Rural Housing Loans are provided by the U.S. Department of Agriculture to applicants whose desired home is in an eligible rural area. The applicant’s income must not exceed 60% of the area’s median income in order to qualify for a loan. For more information on this program and to learn how to apply, visit the Rural Housing Loans program page.

Home Loan for Regular Purchase

The Home Loan program, administered by the U.S. Department of Veterans Affairs (VA), offers VA Home Loans, which guarantee a percentage of home loans for eligible veterans, active duty service members, current Army Reserve and Army National Guard members, and certain living spouses. By guaranteeing a percentage of the loan, the veteran is more easily able to obtain a no down-payment mortgage at a competitive interest rate that does not require private mortgage insurance. To read more about program requirements and to learn how to apply, visit the Home Loan for Regular Purchase program page. encourages you to take the Benefit Finder questionnaire to find other benefit programs you may be eligible for. To find more programs on housing loans, browse our Housing and Public Utilities category and filter by the ‘Housing Loans’ subcategory.

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