Government backed loans are more popular since they every often offer features not

VA Loan Veterans Affair Concept

available through conventional loans. The rate may be lower. The down payment may be lower. It may be easier to qualify.

Government-backed loans are secured by a federal agency. Several federal agencies offer mortgage programs, including the FHA and VA.

or each loan type, the backing agency insures, or guarantees, the loan amount, which protects the lender in the event a borrower can’t repay the loan. This removes significant risk, making it easier for lenders to offer lower rates and lower-to-no down payment options.

Government-backed mortgage loans are different from conventional loans in that:
Conventional loans are not insured by a government agency.

They are riskier for lenders, so they tend to have stricter eligibility requirements.

Conventional loans are generally more popular and accessible than government-backed mortgage loans.

Government-backed loans have different cost structures than conventional loans, including upfront fees and mortgage insurance requirements.

Government-backed loans have eligibility requirements that you won’t see with conventional loans. For example, VA loans are reserved only for members of the military and their families.

Ruth Schoenherr can help you find an FHA mortgage, a VA mortgage or a conventional mortgage. Call today for an appointment.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.