VA, FHA and USDA Loans

If you are a veteran and can qualify for a VA loan you are very fortunate. These loans require, in most cases, no down payment. The interest rate is usually a little lower than conventional loans. The underwriting is easier. If you qualify for a VA loan that should be your first choice. These are very good loans in my opinion.

FHA loans are limited to $530,100. Down payments are low and there are some supplementary assistance programs available. Although the interest rate is low a borrower must pay an FHA fee. This boosts the cost. However FHA is a very good program for first-time buyers and four some people with spotty credit and limited funds.

USDA loans are restricted to the rural areas. There can be no down payment and loan amounts are not limited. There are some other restrictions. In general for a qualifying rural area this is a very good program.