If you’re interested in obtaining your own home, you’re not alone. Home ownership has been a classic American dream for decades, and the security and value in owning a home is highly appealing, even in a volatile housing market. It’s not always easy for people to find a loan at the terms they need, but fortunately, the government is around to help. Since 1934, the Federal Housing Administration, a division of the Department of Housing and Urban Development, has been assisting citizens with government home loans.

Government Home Loan Options

• 203(b) Mortgage InsuranceThere are a variety of services the government can provide to help you with your home loan. One is 203(b) Mortgage Insurance. This is a program wherein the government insures a mortgage loan for purchasing or refinancing a primary residence. Although the loan is obtained through a private mortgage lender, the fact that the government insures the loan may make it easier to obtain and at better terms.
• 203(k) LoanIf you’re interested in purchasing a house as a “fixer-upper,” the government wants to help. Ordinarily, obtaining a mortgage for a house in need of repair can be difficult, because the lending institution doesn’t want to lend out the money until the repairs are complete, but the new potential owner cannot complete the repairs until he or she owns the house. The 203(k) loan can help resolve this difficulty. This loan covers the amount of the purchase price of the property plus the estimated cost of repairs. When the loan is disbursed, the payment amount is paid to the seller while the remainder goes into escrow until needed to effect the repairs.
• Reverse MortgageIf you are 62 years or older and own your own home, you can apply for a reverse mortgage. Effectively, this is a process of the government buying your house back from you. You will receive regular payments based on the equity of your home. Upon your death or relocation, the amount can be repaid or the house will be sold and the loan amount will be reimbursed from the proceeds.
• Other Government Home Loan OptionsThese are only a few of the options available from the government to help out those looking for their own mortgage. You can visit the Federal Housing Administration’s section of the Housing and Urban Development website at HUD.gov to learn more. If you are a veteran, you may also be eligible for VA home loan benefits. To investigate this further, visit the home loans section of the U.S. Department of Veterans Affairs website at Homeloans.VA.gov.

TSC Sources and Recommended Resources

• Find the Best FHA Home Loans
• GovLoans –  Find the Right Loans for You
• Reverse Mortgage Information