Government Home Loans Guide

Government home loans can be a good way to get into a house if you have limited resources that make conventional financing difficult. The US government assists new home buyers in a variety of ways under a variety of conditions, and while the paperwork and red tape can be more copious than what comes with conventional financing, (which is already a lot of paperwork) you can find some very good deals if you have the patience and the inclination.

The US Department of Housing and Urban Development (HUD) maintains a webpage that contains a wealth of information on how to purchase a low-cost home with government assistance. The HUD website http://www.hud.gov/buying/ explains in detail what is involved in obtaining an FHA or VA mortgage and which properties might qualify, as well as information on federal mortgage lenders Fannie Mae, Freddie Mac, and various rural housing loan programs,

Free calculators and articles are available at the site to help you determine how much house you can afford and what kinds of loans would be best suited to your needs. Advice on how to find a lender and how to recognize predatory lending practices are included. Information on understanding your rights as a home buyer is highlighted; including sections on Fair Housing, Real Estate Settlement Procedures, borrower’s rights, and federal rules and regulations and regulations that apply to lenders.

You can also search home buying programs in your specific state at the HUD site at http://www.hud.gov/buying/localbuying.cfm and also browse fixer-upper properties and HUD repossession properties at http://www.hud.gov/homes/homesforsale.cfm.

Another good online resource for government home loans is http://www.govloans.gov/govloans_en.portal. There you can research options for government backed loans for buying and rehabilitating inner city property, properties in depressed rural areas, mobile home and manufactured homes, homes in disaster relief areas, and lots of home improvement loans backed by federal assistance programs.

Special government-backed housing loans are available for low income Americans, American Indians, and veterans, as well as survivors of natural disasters.

If you are handy at do-it-yourself projects or rehab, you can purchase a property repossessed by the US government inexpensively and then borrow money through the US government to fix it up. The only requirement in most cases is that you live in the property yourself and complete the repairs within a given timeframe.

Another resource for finding federal money to help with the purchase of a home is http://www.fedmoney.org/, a site that also provides links to information on other kinds of federal grant and loan programs.

In addition to federal money, many local communities provide low cost loans to low-income persons who are willing to move into rehabbed properties in blighted neighborhoods and live in them as their primary residence. If you live in an apartment or in public housing, these programs can be great for getting you into your first house, and they have the welcome (and intended) side effect of bringing damaged neighborhoods back to life.

Often the community feeling in these rehabbed areas is very strong and friendly, and the homes are far superior to what you might find through a conventional source because they are required to be brought up to code when they are rehabbed for resale. It can be almost like getting a brand new house for next to nothing, the catch being that then you have to live in that neighborhood.

To purchase a locally rehabbed home, contact a licensed realtor to determine if you qualify. Usually maximum income limits apply, meaning that if you already have plenty of money, you probably won’t qualify, but if you don’t have plenty of  money and are having difficulties finding a way to buy a home, this can be a golden opportunity,