lower closing costs than conventional loans,” says Rachel Hartman on Bankrate.com.
2. USDA Loan
Not as well-known as the FHA loan, but still worth mentioning, is the U.S. Department of Agriculture (USDA) loan, which offers a home buyer assistance program. “While the program focuses on homes in certain rural areas, you don’t need to buy or run a farm to be eligible,” says Hartman. “The USDA guarantees the home loan. There may be no down payment required, and the loan payments are fixed.” USDA loans have income limitations, which vary regionally, so research the specific requirements for your area. The U.S. Department of Veterans Affairs (VA) helps military personnel, veterans, and surviving spouses buy homes through VA loans. If you are one of the above, then qualifying is simple — you don’t need a minimum credit score, you don’t need to pay for private mortgage insurance, you don’t need a down payment, and the loans come with competitive interest rates. As a bonus, the VA can negotiate with the lender on your behalf if making payments on the mortgage becomes difficult for any reason. 3. VA Loan
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