Types of Loans
First, let's divide loans in two categories: conventional and government. To make it clear let's
name the government loans: FHA, VA and RHS.
FHA Loans
FHA or The Federal Housing Administration is a part of the Department of Housing and Urban Development and was created about 80 years ago to help low-income families to finance their homes. This type of loan is now available almost in every bank.
Advantages: guaranty of repayment, low rates on loans and easy to qualify, small down payments, your credit is not important, your debts are a smaller problem than with other loans.
Disadvantages: The amount of money you can borrow is limited (in big cities like Seattle - about $350,000). When putting less than 20% down on your home you have to pay mortgage insurance.
VA Loans
It's guaranteed by U.S. Dept. of Veterans Affairs - eligible for veterans and service persons.
FHA Loans
FHA or The Federal Housing Administration is a part of the Department of Housing and Urban Development and was created about 80 years ago to help low-income families to finance their homes. This type of loan is now available almost in every bank.
Advantages: guaranty of repayment, low rates on loans and easy to qualify, small down payments, your credit is not important, your debts are a smaller problem than with other loans.
Disadvantages: The amount of money you can borrow is limited (in big cities like Seattle - about $350,000). When putting less than 20% down on your home you have to pay mortgage insurance.
VA Loans
It's guaranteed by U.S. Dept. of Veterans Affairs - eligible for veterans and service persons.
