|
LESSON 7: SPECIAL AND FIRST-TIME
BUYER PROGRAMS
(continued from previous page)
Federal Housing Administration
(FHA) mortgages
FHA loans, like VA mortgages, are backed -- but not issued -- by
the U.S. government. Basically, the Department of Housing and Urban
Development (HUD), which runs the FHA program, collects mortgage
insurance payments from borrowers and ensures lenders full payment
if those borrowers default.
FHA loans feature easier credit qualification, down payment and
underwriting
standards than other mortgages.
Rural Housing Service mortgages
This agency of the Department of Agriculture provides financing
to farmers and other qualified borrowers buying property in rural
areas who are unable to obtain loans elsewhere. It offers low-interest-rate
loans with no down payment to borrowers with low- and moderate-incomes
who live in rural areas or small towns.
State and local government-backed
mortgages
Many state and local housing agencies sponsor programs to help first-time
homebuyers who meet specified income guidelines or are willing to
buy homes in certain locations. These loans feature low down payment
requirements, subsidized interest rates, closing cost assistance
and other benefits.
Other special programs:
Foreigners
face more hurdles when getting a mortgage
Reverse
mortgage lets seniors cash in without selling out
How
to use IRA distributions if you're a first-time home buyer
|
