What types of government loans are there?
Basically there are four types of government loans first there is FHA and in this type of loan you need a down payment on a purchase of 3.5% which can be a gift, you need a credit score of at least 580 or in some cases 540 with compensating factors. If need be you can get a non owner occupied co borrower to help get qualified. Next there is the VA loan that allows for not only 0 down but also does not include a monthly MI payment. Some banks require certain credit scores but 580 should work for most lenders. Third there is the Rural program which also has a 0 down requirement with no monthly MI but there are income and a 620 credit score requirement. Finally, there is a 203K or rehab loan where a borrower can get up to $35,000 in a purchase transactions for work to be done on the home being purchased such as interior exterior painting, siding, new roof, windows, appliances and in some cases structural work.
