Previously I said it was two types of insured mortgages, but actually, there are two main sources to which to obtain insured mortgages and one not so popular source, which are gained through FmHA.
Having private mortgage insurance is one of the conditions and obtaining a mortgage with a low down payment. The cost of private mortgage is added to your monthly mortgage payments.
There are several programs that you can obtain mortgage insurance.
- FHA (Federal Housing Administration) mortgage insurance programs.
- Farmer Home Administration (FmHA) loan guarantee program.
- Veterans Administration (VA)) loan guarantee program.
The government insures FHA and VA loans. To obtain either FHA or VA loans, you simple apply through an approved lender. Both types of loans must meet certain minimum standards. Theses properties usually have stricter home inspection guidelines.
Recently the guidelines have loosened to compete with conventional loans.
The Farmers Home Administration is part of the Unites States Department of Agriculture (USDA) .The FmHa administers direct housing loans insured loans, and grants to low to moderate-income families in rural areas. FmHA loans are available in rural areas or rural towns with populations of 10,000 or less. Rural areas with up to 20,000 people can be included if there are no other mortgage lenders in the area.
Until next time
Happy Home Hunting
