Government Loans - HUD/FHA

- Anita J.

When it comes to housing, there are several government loans available through HUD and FHA. To understand these loans you must first know what is available. The list of government loans that fall under this category includes Adjustable Rate Mortgage Insurance, Basic FHA Loan (Home Mortgage Insurance, Condominium Unit Purchase, Manufactured Home Loan Insurance, Property Improvement Loan Insurance, and Rehabilitation Mortgage Insurance.

Adjustable Rate Mortgage Insurance can aid people in buying a single family home that is for the sole purpose of their living quarters. This means they cannot purchase the home and then rent it. This money does not come from HUD, lending companies that are FDA approved will be the ones making the loan. In order to qualify for this type of loan you must be a homeowner or are planning to be a homeowner. The terms of the loan differ according to the lending company that you choose.

The Basic FHA Loan is basically the same as the above loan except that with this loan is for refinancing an existing mortgage.

Condominium Unit Purchase is for the purchase of a home in a condominium development that will be the primary resident of the borrower.  The length of the loan is a maximum of 30 years.

The Manufactured Home Loan Insurance is just what it says. This loan allows for the financing of a manufactured home where it will be the primary resident of the borrower. The loan terms are normally market interest rate with variable upfront fees. The length of the loan is usually between 20 and 25 years with a maximum loan amount of $64,800.

Rehabilitation Mortgage Insurance is another HUD/FHA loan in which you must be a current or prospective homeowner. This loan is only for repairing or improving an existing home that is need of repairs or improvement and is more than one year old. The length of the loan is up to 30 years. The amount varies according to the area loan limit.

With all of these loans, you must realize that the money comes from lending companies and not directly from the government. The government is only guaranteeing the loan amount to the lending company, similar to insurance. In order to learn if you can qualify for HUD/FHA government loans you will have to fill out an application with a lending company. It would be in your best interest to talk with various lenders to ensure that you are given the best deal around.