There are several government mortgage insurance programs that make homeownership more affordable for eligible buyers. These programs include:
Federal Housing Administration (FHA): The FHA insures mortgages made by approved lenders, allowing buyers to put down as little as 3.5% of the purchase price. This program is particularly beneficial for first-time buyers or buyers with less-than-perfect credit.
Veterans Affairs (VA): The VA provides home loan benefits to veterans, active-duty service members, and eligible surviving spouses. The VA does not provide mortgages, but instead guarantees a portion of the loan, which allows veterans to purchase a home with little or no down payment.
Department of Agriculture (USDA): The USDA provides home loans to low and moderate-income buyers in rural areas. USDA home loans are offered with 100% financing, meaning no down payment is required.
Freddie Mac: Freddie Mac is a government-sponsored enterprise (GSE) that purchases mortgages on the secondary market and makes them available for purchase through their HomeSteps program. Buyers can purchase a Freddie Mac home with as little as 3% down.
Fannie Mae: Fannie Mae is another GSE that purchases mortgages on the secondary market and makes them available for purchase through their HomePath program. Similar to Freddie Mac, buyers can purchase a Fannie Mae home with as little as 3% down.
All of these programs have their own set of guidelines and requirements, and these homes are sold through various sales programs such as auctions, private sales, and real estate agents. NCHUDHomes.com uses Lightkeeper Realty, a full-service real estate agency, to help buyers navigate these programs and find their perfect government-acquired home.