Government loan programs are a great way for buyers to purchase a home with little or no down payment. Some buyers may not realize they could be approved for a government loan and make their dream of home ownership come true. Below are three programs that have helped many people just like yourself purchase a home when a conventional loan was not the right fit.
Because of the lower down payment options, government loans have added fees to reduce the risk to the mortgage holder. In most transactions these fees are charged to the borrower. However when buying real estate with a government loan, there is an option that allows for the seller to pay some of these fees. Government loans will allow the seller to pay up to 6% of the total sales price towards the loan fees at closing.
Some government loan programs also provide benefits for first time home buyers. It is always a good decision to discuss these options with the loan officer prior to shopping for a new home. Having this knowledge will help buyers throughout the negotiation process and ensure they are happy with their decision.
Navigating the home mortgage process can seem daunting, and many people think they would not qualify. By educating yourself on these available government loan options, you may find that you are much closer to buying a home than you may have thought.