What are the advantages and disadvantages of government loans?
There are two main types of government loans: VA, sponsored by the Veterans Administration, and FHA, sponsored by HUD. VA loans are only available to qualified Veterans. Therefore, they are not an option for many people. However, if you are eligible for a VA loan they can be a tremendous benefit. VA loans require zero down payment and no mortgage insurance. They are currently available only as fixed rates, no adjustable. The mortgages are assumable to qualified future purchasers of your home, which can be a great selling tool in times when interest rates are higher. FHA loans are available to any qualified borrower. An obvious drawback to the program is the paperwork, which is long and detailed. However, Landmark Mortgage can help you with the government forms, making the confusing information easy to understand. FHA loans are great for people purchasing multi-family properties, because the down payment requirement is generally only 5% of the sales price, even on three and four family
