Easier to qualify than conventional loans due to lower credit score and debt ratio requirements. Minimum downpayment of 3.5%. Qualifying credit scores down to 500 however requires at least 10% downpayment if credit score is below 580. Though more liberal credit score requirements, the higher the credit score the better the chance to get approved. Mandatory mortgage insurance that continues for the duration of the loan term.
VA loans are one of the most popular choices among eligible home buyers because of the exceptional benefits they offer military borrowers. Generally it is easier to qualify for a VA loan than a conventional loan or an FHA loan.
A VA loan is a mortgage guaranteed by the U.S. Department of Veteran Affairs. VA loans are designed to help active duty military and veterans qualify for home ownership. They offer lower interest rates and better terms than conventional mortgages, and are offered exclusively to service members and certain military spouses.
Less restrictive and more affordable than conventional loans. Involves geographical and income restrictions. Applicable to borrowers who live in areas defined as rural.
The United States Department of Agriculture (USDA) provides special financing opportunities to borrowers who live in rural areas as defined by the USDA. In fact, approximately 97% of U.S. homes are located in eligible areas. To see if the area you are shopping for a home in qualifies, visit the USDA Property and Eligibility Site.