How To Apply for Government Home Loans
Government loans are made available by the Federal Housing Administration (FHA) which enables certain individuals to pursue their dream of having their own home. The application process is somewhat complex, but with some guidance you can get hold of a substantial amount, which will be provided by a local lender on the guarantee of the FHA.
Instructions
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1
Loan qualification
You need to first check whether you are qualified for an FHA loan. Visit the FHA website for the types of loans which they are offering and check whether you meet their requirements. Important considerations will include your current income, along with the amount you owe to other creditors. Your credit history will be taken into account and the amount you can pay upfront.
For a first time home buyer, the interest rate will be relatively higher as you will be paying a small fee at the beginning, usually referred to as down payment. You will be assessed on the above mentioned criteria so make sure to have a good credit history.
Other types include buying a home that needs repairing, or a manufactured home. In both cases, the FHA will need you to meet their credit requirements where you will be entitled to buy the house and will be further aided in any repairing that needs to be carried out.
Apart from the FHA, certain loans, for veterans or such, will be given by Veterans Administration (VA). The criteria are the same with no upfront fee. Other types of assistances are also on offer such as loan modification and upgrading your current home. Make sure that you fall in all of the above categories before deciding to apply for a government loan. -
2
Get yourself approved
You will need to contact the Housing and Urban Development (HUD) department where you will be required to hand out all your personal, work-related and family details. Fill out the application process and contact the HUD officer for additional help. -
3
Search for a lender
There will be FHA and HUD-approved lenders who can assist you. Get in touch with a couple of them and follow the same procedure for approval. Choose the lender which matches your financial requirements. Preferably, keep an eye on the property you wish to buy and make sure that it falls into your financial range.
The lender will inform you about the amount you have been qualified to borrow. Contact the selling party to close the deal.
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