Whitley Mortgage Associates, Inc. NMLS# 107585

Government Loans

Government-backed loans are loans subsidized by the government, which protects lenders against defaults on payments, thereby making it a lot easier for lenders to offer potential borrowers lower interest rates. The primary aim of government-backed home loans is to make home ownership affordable to lower income households and first-time buyers.

Ready to work with Whitley Mortgage?

Please feel free to call us anytime Monday through Friday at 704-283-9465.

There are three main types of government-backed loans:

1. FHA Loans:

Typically for first-time home buyers, but anyone who qualifies can get lower credit requirements, low down payments, and great rates.

2. VA Loans:

These types of loans are designed specifically for eligible veterans and their spouses. VA loans offer very low rates—and in many cases—no down payment at all.

3. USDA Rural Development:

These loans—at one time only intended just for farmers—now serve rural communities as a whole and guarantees as much as 100% percent on qualified mortgages.

Depending on which government-backed home loan is right for you, you’ll find that there are some very good benefits associated with them:

Government-backed loans are more likely to close

While only a small percentage of the population may be eligible for government-backed loans, these types of loans and VA loans, in particular, have a much higher close rate than conventional loans.

Government-backed loans give you very low-interest rates

While it’s true that some government-backed loans come with steep interest rates, others have even better rates than conventional loans. The rate you get will depend on many factors such as your credit score and the lender you choose, but in general, government loans are known for having lower interest rates—on average—than conventional loans.

Government-backed loans don’t take too long to close

A common misconception in the mortgage world is that government-backed loans take forever to close but studies show that while the average conventional loan takes 49 days to close, VA loans take about 50 days on average. Again, while these are just averages, don’t overlook the benefits of a government-backed home loan because you think they take too long to close. Whitley Mortgage can help you navigate the mortgage timeline of the loan that is best for you.

To find out more about government-backed loans and which one of them might be right for you, contact Whitley Mortgage today to explore all your financing options.

Contact Us

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
Enter a value
Down payment
Down payment is cash that you pay upfront for your home.
0.0%
Enter a value
Term in years
Number of years you have to pay.
years
Enter a value
Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
Enter a value
Property tax
Enter your property tax here if you know it.
per year
Enter a value
Home insurance
Most lenders require home insurance. Enter its price here.
per year
Enter a value
PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
Enter a value

Your total monthly payment

$


Principal & Interest: $

Our Location

At Whitley Mortgage, we want to help you purchase the property that you have always dreamed of – whether it’s your first home, commercial real estate or a vacation home.

Commercial Real Estate Mortgages
Call Now Button