Government-Backed Loans

Federally-Insured Loans for a Variety of Buyers

About

Unconventional Mortgage Services

At Federal Hill Mortgage, our goal is to guide you to selecting the mortgage option that works best for your budget, home buying needs, and future goals. When we say the phrase “unconventional loans,” we’re simply referring to loans insured by the federal government. Conventional loans, on the other hand, are not.  Government-backed loans are a popular option among many prospective buyers, as they offer certain benefits to so long as you meet the required criteria. Primarily, government-backed loans help reduce the down payment required to help lower reduce the barrier to entry for buyers.

The Three Types of Government-Backed Loans

FHA Loan

Loans insured through the Federal Housing Administration
FHA loans seek to help more prospective buyers finance the home of their dreams by reducing the neccesary down payment to as low as 3.5% It's an accessible option with a low minimum credit score requirement.
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VA Loan

Loans insured by the Department of Veterans Affairs
This loan program is created for veterans and active-duty service members to allow them finance a great home with a zero percent down. This loan can also be accessed by the spouse of a service member who perished in the line of duty.
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USDA Loan

Loans insured by the US Department of Agriculture
USDA loans incentivize home buyers to purchase in rural or semi-suburban areas by offering greatly reduced down payments. This is. agreat option for those who appreciate some peace and quiet in their lives.
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Unconventional Mortgages

What are the Requirements of Governement Backed Loans?

Each government-backed loan has its own requirements for applicants. FHA loans require a minimum credit score of 580 to access the 3.5% down payment rate. However, scores as low as 500 may be allowed but in those cases, 10% would need to be put down. FHA loans also require the buyer to purchase mortgage insurance. 

VA loans on the other hand, have a simpler requirement. To qualify, you must be a veteran, active-duty service member, or the spouse of a service member that lost their lives in the line of duty.

USDA loans are limited to low and moderate-income buyers and require you to purchase a home that falls within an eligible area. You can find eligible areas here.  

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Get Started on Your Mortgage Journey Now

At Federal Hill Mortgage, we gauge our success by how you succeed in your home buying goals. We believe that transparent, honest, and expert mortgage origination can make all of the difference for you and your family. If you’re ready to finance the home of your dreams, apply today.