FHA, VA and Rural Housing Provide best options for the American Dream

In today's economy, most consumers don't realize the dream of becoming a homeowner without mortgage programs that offer zero down financing. In spite of the many changes in the mortgage industry, some options are still available to help consumers reach that dream.

Many changes have occured in the mortgage industry in the past 12 months which have reduced the options for borrowers to achieve homeownership. Some programs still exist allowing borrowers to achieve homeownership. FHA combined with gift funds, VA loans and Rural Housing all have options for consumers. All of these programs allow the seller to pay all or part of the closing costs.

FHA has come back in popularity in today's mortgage market. Although FHA does require the borrower to have 3% of their own funds into the transaction, they can satisfy this by receiving a gift from a qualified source. Gift funds with FHA are considered the borrowers own funds. The new bill passed in 2008 increases the minimum loan size for FHA loans opening the progam to more consumers and metropolitan areas. FHA also has reduced monthly mortgage insurance compared to most conforming loan products. Contact a Mortgage Specialist to find out more information on what sources are acceptable for gift funds and if you qualify for an FHA loan.

VA loans will continue to grow in popularity as veterans return back from the war. VA offers 100% financing with no monthly mortgage insurance. Benefits to veterans are determined by the veterans benefit awards letter. Additional benefits are available for disabled veterans. Contact a Mortgage Specialist to find out if you qualify for a VA loan.

USDA Rural Housing is another way a borrower can get into a property with no out of pocket money. Rural Houisng is a government agency that will provide 100% financing with no monthly mortgage insurance for lower income borrowers in rural areas. Typically this excludes counties that are considered metro areas, although some parts of these counties may be eligible. Contact a Mortgage Specialist to find out if you qualify for a Rural Housing loan and if your target area qualifies as rural.