Home Mortgage Loans
A conventional loan just means that it is not backed by the government. A Government-Insured loan is a loan that is backed by the government, ensuring the lender from borrower default. There are a few different kinds of Government-Insured Loans; VA loans, FHA loans, USDA/RHS loans.
A VA loan is a loan that is offered by the U.S. Department of Veterans Affairs. A Va loan is offered to former or current military service members and their families. A great advantage of this type of loan is that a borrower can receive 100% of the loan upfront, meaning no down payment.
An FHA loan is a loan given by the Federal Housing Administration and managed by the Department of Housing and Urban Development (HUD). This type of loan allows you to pay a very low down payment, as low as 3.5% of the total loan, unfortunately, this means you have to pay more in monthly payments.
A USDA/RHS loan is a loan from the United States Department of Agriculture, this program is overseen by the Rural Housing Service (RHS). This loan is designed for borrowers with low income that live in rural areas that have trouble getting financial assistance from traditional lenders.
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