Comparing VA Home Loan Programs and FHA Home Loan Programs

VA home loan programs and FHA home loan programs have much in common. Both try to make affordable home ownership available to people, but there is a big difference to be found between the two. VA home loan programs are available specifically for those who served in the armed forces. By looking into both of the programs, mortgage-seekers can find a federal program to help with their home financing. Typically, if one program doesn�t work, the other may.

About VA Home Loan Programs

VA home loan programs are made for qualified veterans as part of the benefits extended after serving in the military. But in order to qualify for a VA home loan programs, a veteran must meet specific criteria

� A veteran must have a Certificate of Eligibility from the Department of Veterans Affairs
� A veteran must have good credit (usually for the past two years) and an adequate credit score
� A veteran must have enough income to repay the loan
� A veteran must meet debt-to-income requirements as outlined by the VA home loan programs
� The home must be used as a residence after closing or renovations are complete

Some other individuals also have VA home loan programs available to them, including:

� National Guard or Reserve members who meet specific requirements
� Widowed spouses of servicemen who died in duty, who have not remarried
� U.S. citizens and their spouses who served with an Allied country during World War II

VA home loan programs have many advantages and benefits, including:

� No down payment loans
� Competitive rates, including fixed and adjustable, no matter the credit history
� Lengthened and flexible terms of 15, 30 and more years
� No prepayment penalty and help available during financial hardship
� Specific protections and warranties which protect the borrower against inferior buildings or discrimination

People who have limited military service and can�t get a VA home loan programs can also get one of the FHA home loan programs. Those with no military experience at all, can get access to the FHA home loan programs, too.

About FHA Home Loan Programs
For those who can�t take advantage of the VA home loan programs, there are FHA home loan programs available. While the FHA home loan programs do not have many advantages over the VA process, there are some. With the FHA programs, more than half of the loan is insured, a benefit not available in the VA, which should be considered by veterans.

FHA home loan programs are similar to VA loans in many other ways, aside from the insured benefit. FHA home loan programs also offer

� Low down payment
� Federal security, which can mean better terms from lenders
� Flexible terms
� Adjustable payment options
� Good interest rates and affordable payments
� Refinance options for existing loans

Qualifying borrowers can benefit from either the VA home loan programs or the FHA home loan programs. By meeting the requirements of each program, borrowers can make their home ownership goals a reality with good terms and through these good programs.

By : Access National