Government Loan Programs that AmeriPro Funding's Home Loan Specialists Team Offers (FHA, VA, USDA)

FHA Loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money directly to borrowers, rather, it provides lenders protection against default through mortgage insurance (MIP). Available to most buyers, FHA loan programs are designed to help creditworthy low- and moderate-income families who do not meet requirements for conventional mortgage loans.

FHA loan programs are particularly beneficial to those buyers with little money available for down payment. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 3.5% down payment is required
• Sellers may contribute towards closing costs
• Gifted funds may be used for down payment and closing costs
• Some closing costs can be financed
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium
• More flexible underwriting criteria than conventional loans
• FHA provides limts for some closing costs (e.g. the origination fee can be no more than 1% of mortgage)
• Loans are assumable to qualified buyers

Additional information on FHA loans is available at www.texasfhaloansonline.com

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to active military and eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Low interest rates 
• Closing costs are comparable, and sometimes lower, than other types of financing.
• No private mortgage insurance (PMI) requirement. 
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and the Veterans Administration.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A "Certificate of Eligibility" from the VA must be presented to the lender to qualify for the loan. Most other traditional loan documentation applies.

The Texas Veterans Land Board also has home and land financing programs available for veterans.