Know your mortgage options
Know your mortgage options
Alternative mortgage options
If you’re looking for alternatives to a conventional mortgage loan, there are some loans insured by the government and assistance programs you can look into.
• FHA loans — If you have limited funds for a down payment, an FHA mortgage might be right for you. Visit the U.S. Department of Housing and Urban Development at HUD.gov for details.
• FHA 203(k) loan — Want to buy a fixer-upper and transform it into your primary residence? The FHA 203(k) renovation loan program might be able to help. Visit HUD.gov for details.
• VA loans — If you’re a member of the military, a veteran or an eligible surviving spouse, the VA loan program offers low- and no-down-payment loans to make homebuying a whole lot easier for you. Visit benefits.va.gov/homeloans for details.
• Other government loans — For more information on other types of mortgage loans offered by the government, visit govloans.gov or contact a HUD-approved housing counselor by visiting HUD’s website.
Alternative mortgage loans and assistance programs have different requirements and benefits. Talk to your lender about the various options and explore what’s best for your situation.
When combined with an eligible loan, the following programs can help you achieve successful homeownership.
• Local agencies:
Check with your local housing agencies and nonprofits for programs that provide down payment and closing cost assistance.
• Employer programs:
Some employers provide down payment and closing cost assistance for their employees.
• Mortgage credit certificates*:
This tax credit could reduce your federal income tax liability, which would free up more funds to qualify for and repay a loan.
• Homebuyer education (HBE)
A homebuyer education program is usually required when you use an assistance program. Contact a homebuying counseling agency to learn more.
Eligibility for assistance may depend on:
Type of mortgage
Steady source of income
Savings for a down payment
*[Placeholder for tax disclaimer legal language.]
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