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Jul 05, 2022

Brokers have a few government-backed loan options that can help grow their business even during difficult market conditions. A government-backed mortgage is a loan that is insured by the U.S. federal government.

Here are a few types of government loans that can help increase the number of loans processed and approved:

FHA Loans

This type of government loan is often helpful for first-time homebuyers. The Federal Housing Administration (FHA) Loan is a mortgage insured by the Federal Government.

Lenders can offer single-family mortgages:

  • Flexible credit qualifying requirements
  • Loan terms featuring low-down payment, low-interest rates, and low closing costs.

We can help you increase your FHA loan sales with our borrower-friendly underwriting guidelines. Watch your sales add up with our reduced FICO requirement for FHA fixed-rate loans.

USDA Loans

This type of government loan is also known as ’Rural Housing Loan’ and with this type of loan, the U.S. Department of Agriculture offers a 100% financing mortgage.

USDA loans are also available to low-to-moderate income homebuyers in less-populated suburbs of some major U.S. cities.

Some key benefits of the USDA loan include:

  • No down payment requirement
  • No maximum home purchase price
  • Eligible home repairs and improvements may be included in the loan amount

Additionally, some upfront fees can be included in the loan amount. It is also worth noting that USDA loans are only available to a fairly select group of potential properties and will sometimes require borrowers to have mortgage insurance.

VA Loans

VA loans offer a way to increase homeownership while honoring the nation’s Veterans.

With a well-structured VA loan, the benefits include no down payment and ideally no closing costs to the seller. Also, VA mortgage rates tend to be lower than conforming conventional rates.

To qualify for a VA loan, a borrower must be an active service member, veteran, or surviving spouse of a veteran.

Active-duty borrowers must have served at least 181 days during peacetime or 90 days during wartime, while a National Guard/Reserve borrower must have served at least 6 years.

By offering a path to homeownership, brokers and lenders have a tremendous opportunity to show appreciation to veterans for their valor and sacrifice.

The Caliber Difference

We created the Military and Veteran Lending Team to provide the industry’s best lending services to veteran and active military homebuyers whom we consider to be our extended family.

Our experienced and certified underwriters are here to offer you their complete support and help you grow your business.

Brokers and lenders are encouraged to explore the various loan opportunities made possible to their borrowers by government loans.