| A lot of first-time home buyers have
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| | process.
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| questions about low-income home buying
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| | Federal Housing Authority
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| programs. So here's an overview of
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| | The Federal Housing Authority (FHA) also
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| low-income home buying programs, how they
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| | supports low-income home buying in the
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| work, and where you can learn more.
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| | U.S. This organization was created as
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| Generally speaking, a low-income home
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| | part of The National Housing Act of 1934.
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| buying program is any program that's
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| | The FHA insures mortgages, which helps
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| designed to help home buyers who may not
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| | low-income home buyers qualify for
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| otherwise qualify for a mortgage loan.
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| | mortgage loans they might not otherwise
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| Normally, when you talk about such
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| | qualify for.
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| programs, you're talking about a loan
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| | Learn more at
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| that gets some form of government
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| | Rural Housing Authority
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| backing. In other words, the government
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| | The Rural Housing Authority (RHA) can
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| backs or guarantees a loan on behalf of
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| | assist low-income home buyers in certain
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| the home buyer who is applying for the
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| | situations. The RHA is part of the United
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| loan. This is the essence of how most
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| | States Department of Agriculture (USDA).
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| low-income home buying programs work.
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| | Unlike the organizations listed above,
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| When the government backs a loan for a
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| | the RHA actually makes direct loans to
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| slightly unqualified borrower, mortgage
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| | home buyers. They also guarantee loans
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| lenders will be more inclined to loan
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| | for home buyers in rural areas.
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| money to that borrower. The lender is
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| | Learn more at
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| comfortable doing this, because in the
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| | Veteran's Administration Home Loans
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| event that the borrower defaults on the
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| | The Veteran's Administration (VA) helps
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| loan, the government has agreed to back
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| | home buyers by guaranteeing loans made by
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| it, so the lender would still be paid.
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| | mortgage lenders. The VA does not
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| Fannie Mae
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| | actually make direct loans. The VA home
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| Fannie Mae is a shortened version of
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| | loan program is reserved for U.S.
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| Federal National Mortgage Association
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| | military veterans and their spouses. To
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| (FNMA). Congress created this
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| | apply to this program, one must first
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| organization in 1938. According to their
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| | obtain a Certificate of Eligibility from
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| website, Fannie Mae "provides financial
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| | the VA. The home buyer would then present
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| products and services that make it
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| | this certificate to their mortgage
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| possible for low-, moderate-, and
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| | lender.
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| middle-income families to buy homes of
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| | Learn more at
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| their own."
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| | State-Sponsored Programs
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| Learn more at
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| | In addition to the federal programs
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| Freddie Mac
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| | listed above, there are many programs
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| Freddie Mac is a shortened version of
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| | unique to certain states. For instance,
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| Federal Home Loan Mortgage Corporation.
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| | the Michigan State Housing Development
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| Congress chartered this organization in
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| | Authority "makes low interest mortgage
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| 1970. Freddie Mac supports the secondary
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| | loans available through [their] network
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| mortgage market by purchasing residential
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| | of experienced lenders." Most other
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| mortgage loans and reselling them to
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| | states have similar programs, in one form
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| investors (mostly on Wall Street). This
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| | or another.
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| increases the availability and
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| | State programs are too numerous to list
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| affordability of home loans for low- and
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| | on this page. To learn more about them,
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| middle-income Americans.
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| | searching online for home buying programs
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| Learn more at
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| | in your state.
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| As a home buyer, you wouldn't normally
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| | * You may republish this article online
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| deal directly with an organization like
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| | if you retain the author's byline and the
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| Freddie Mac or Fannie Mae, but they do
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| | active hyperlinks below.
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| have a role in the low-income home buying
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|
