What is an FHA or VA Loan?
The Federal Housing Administration (FHA) insures a wide variety of first mortgages, including fixed rate and ARM products. Down payments are low and gift funds can be used for all costs. Qualifying ratios are generally more liberal than conventional loans. However, mortgage insurance is required and the property being purchased must be owner-occupied. The Department of Veteran’s Affairs (VA) guarantees mortgage loans made to eligible veterans or reservists who are first- or second-time homebuyers. In most cases, no down payment is required. For the most part, VA-guaranteed loans are fixed rate products.
