Buying a home in Louisville, KY may be the biggest investment of your life, but using a government loan program to finance your home can have a host of benefits to ease the financial burden. Especially if you are a military veteran, there are opportunities to make your home purchase one that won’t break the bank!
If you or your spouse qualifies for a VA loan, you should definitely look into this home financing option, as it’s packed with money-saving benefits. First, you can you finance 100% of your home with zero down payment. Banks have much less hesitation preparing VA loans than they do for conventional loans since VA loans are backed by the government, which is reassuring if you’re nervous about your credit history or income. In fact, 8 out of 10 VA loan borrowers could not have qualified for a conventional loan! And in addition to not having down payments, VA loans don’t require Private Mortgage Insurance either – one less monthly cost to pay. Interest rates are generally between .5% and 1% lower than conventional loans’ interest rates as well. So if you or your spouse served time in the military and are now looking to buy a Louisville, KY home, the benefits of VA loans are hard to beat!
If you’re looking to buy a home in a rural area, USDA loans were created specifically with you in mind. Like VA loans, USDA loans can have no down payments, nor do they require mortgage insurance, saving you money each month. To qualify, you must be looking to buy in an area with a population of 10,000 or less (unless you live in a small city or town, in which case the population limit raises to 25,000). There are income limits for USDA loans, so not everyone can qualify, but they are a great home financing option that are guaranteed to save their borrowers money.
FHA loans are offered to anyone and everyone, but the requirements have gotten tighter. Insured by the Federal Housing Association (hence their name), FHA loans have no income limits and fair qualification measures. Similar to VA loans, the government is responsible for defaulted loans, so banks can prepare mortgages for many more people. What are the major benefits? They have one of the lowest minimum down payments – 3.5%. They also have Monthly Insurance Premiums of 1.5%, and their closing costs are government-regulated, which keeps them low. Mortgage loan amounts depend on house prices in each area and smaller than those of conventional loans. So, if you’re looking to buy a smaller home in Louisville, you should look in to financing with an FHA loan as well!
With these loan options, you can save money while financing your new home. Especially if you or your spouse has served for our country, there is no reason not to accept rewards in return. When you start looking for a home, start looking for the appropriate way to finance it as well and you’ll be sure to come out ahead!
About the Author James Kelley of VA Benefit Blog - A law school student at the University of Missouri, James Kelley works to educate the public on government financing options for home purchases. He is a co-founder of Military Basebook, a facebook application that helps connect military members based on where and when they served.
If you are a military veteran and you are considering buying a home in Louisville, KY, please consider visiting the website Real Estate Louisville, KY.