Lenders offer numerous special loan programs that allow small down payments or feature other benefits. Some target first-time home buyers while others primarily help people who don't make much money.
If you need extra help getting into a home, you should check with your bank or financial institution to see if they offer any of these special mortgages. State housing agencies, local HUD offices and Consumer Credit Counseling Service branches can usually provide references, too.
Here's a brief summary of some of the more popular programs:
 Department of Veterans Affairs (VA) mortgages
Backed, but not issued, by the U.S. government, VA loans help veterans and their spouses buy homes. No down payment is required (except for relatively expensive properties) and other benefits may apply. The government says it is more understanding than conventional lenders toward borrowers who default.
Federal Housing Administration (FHA) mortgages
Administered by the Department of Housing and Urban Development (HUD), FHA loans are backed, but not issued, by the U.S. government and feature easier credit qualification, down payment and underwriting standards than conventional loans. HUD collects mortgage insurance payments from borrowers and ensures lenders full payment if those borrowers default.
|
