Government Program Loans, such as those insured through the Federal Housing Administration (“FHA”) or guaranteed by the Department of Veterans Affairs (“VA”), usually require less of a down payment than conventional loans. In other words, you might be able to finance 95% of the house with an FHA loan, whereas a conventional lender would not be willing to lend so high a percentage of the market value of the house. Sometimes government-backed loans are offered at below-market interest rates. Ask your lender or mortgage broker about these programs, or contact the agencies that run them. Also, keep in mind that the Federal Government is not the only government that has such programs. Check out the opportunities that your state, city, and county may have. Perhaps you can find a special program for first-time home buyers or lower-income buyers. If you fit the category, take advantage. Just note that one drawback to financing with a government loan is that the application process for a government loan could take substantially longer than applying for a conventional loan.
There are many other types of loans available. Some have been around for years. Others are recent innovations. As the old saying goes, where there’s a will, there’s a way. And while I recommend being optimistic, don’t get in over your head. Buy a house you can afford, and you will be able to sell it and purchase a more expensive house in the future. If you have legal questions regarding repayment of specific loans, contact Illinois debt relief services.