You may want to explore government-backed loans. These loans are insured by government agencies, and there are three types: FHA, VA, and USDA loans.
Because the government insures these loans, they are less risky for lenders, making it easier for you to qualify for a loan even if you can’t get a conventional loan. However, each government-backed loan has specific criteria that you must meet to qualify, and they also offer unique benefits.
If you meet the criteria for a government-backed loan, you may be able to save on interest or down payment requirements, depending on your eligibility.
- Lower credit score requirements
- Competitive interest rates
- Flexible qualifying criteria
- Mortgage insurance premiums
- Limited eligibility
- Property restrictions