One of the most widely used and most important is the Veterans Home Loan Program which provides assistance in financing a home loan. There is also another government-backed home mortgage loan that veterans may want to consider as well. This government-backed loan is the FHA Home Loan Program.
If you are an active duty member of the military, a veteran, or even the current or surviving spouse of a veteran, you may want to compare the advantages and disadvantages of both the VA Home Loan Program and the FHA Home Loan Program. You should be fully informed about both loan programs before buying a home because it is an important decision and making the wrong decision can cost you thousands of dollars down the line.
VA home loan program VS FHA home loan program
VA home mortgages are similar to many conventional home mortgages, but they have many great benefits not found in conventional loans, such as: You don't need a down payment, your credit score may be lower than what is required for conventional loans, can be roll the closing fees back into the mortgage, making it a 100% finance loan.
The FHA Home Loan Program is the most popular of the home loan programs for non-veterans, and its popularity is growing due to the current tight mortgage market.
They have some of the same advantages of VA home loans, such as: they are easier to refinance, they are more forgiving of credit scores to qualify, and certainly a lower down payment than conventional loans. There are no income limits for FHA loans, but there are limits on how much a person can borrow and it varies from different areas in the country.