You may be eligible for special loan types because of where you live or your military experience. The federal government has financing options if you live in a rural location, are a member of the military, are a veteran or are a surviving spouse of a qualifying military member.

The United States Department of Agriculture (USDA) created a home loan program to increase buying in rural areas. USDA home loans do not require a down payment and have low-interest rates. USDA mortgages are available if the home you want to purchase is in a location the USDA recognizes as in a rural development area. Development areas typically have populations fewer than 20,000 people. 

How to Qualify for Better Home Loan Terms
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To qualify, you must also meet the income requirements for your area. Income caps vary by state, county, and how many people are in your household. 

Veteran Affairs (VA) also backs loans for veterans, service members, and certain family members.

VA mortgage payment assistance can reduce your monthly mortgage payment.

Likewise, you may not need to have a down payment to purchase your home. 

To qualify for a VA-backed home loan, you or your spouse must have completed the minimum active-duty service requirements. If you or your spouse is no longer in the military, the status of separation must not be a dishonorable discharge. 

To apply, you will need to get a Certificate of Eligibility and obtain a loan through a private lender. In addition to loans that help you purchase a home, the VA offers loans to help you refinance a current mortgage.

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By Admin