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Government-Backed Loans

Government-backed loans are insured by the federal government as a way to offer the opportunity of home ownership to people who wouldn't meet the requirement of traditional or conventional lending. There are a few different government-backed mortgage options with different standards for qualification:

FHA Loans

These loans are regulated and insured by the Federal Housing Administration and offer the option of a lower down payment and more flexible income and credit requirements. Other advantages include:

  • 3.5% down payment requirement
  • Low credit score requirement: 620 with 3.5% down
  • Down payment gifts and/or down payment assistance can cover 100% of the down payment and closing costs
  • Lenient income qualification
  • Loan terms of 30 and 15 years fixed rate available
  • One- to four-unit homes are allowed.
  • You may rent out additional units as long as you live in one

VA Loans

For veterans, servicemembers, or surviving spouses, these loans offer a $0-down mortgage option or guarantee by the Department of Veterans Affairs. Eligible borrowers can use a VA loan to purchase a property as their primary residence or refinance an existing mortgage. Other advantages include:

  • Low mortgage rates
  • Absolutely no down payment is required
  • No monthly mortgage insurance
  • Lenient credit score allowance
  • 15- and 30-year fixed-rate loans available
  • Adjustable-rate mortgages available
  • One- to four-unit homes are allowed
  • You may rent out additional units as long as you live in one

USDA Loans

USDA loans are low-interest mortgages with zero down payments and flexible income and credit score requirements. They may be attractive for people who would not qualify for traditional mortgages. You must use a USDA loan to buy a home in a designated area that covers several rural and suburban locations. Other advantages include:

  • No down payment required
  • Low mortgage insurance fees
  • Credit scores qualification starting at 640
  • No loan limits

*Certain eligibility requirements apply to manufactured housing. Consult your Guardian Mortgage loan originator for details. Certain terms and restrictions apply. Program available only to qualified borrowers. Program subject to change without notice. Underwriting terms and conditions apply. Loan subject to credit review and approval.