Federal home loan

A federal home loan offers new opportunity for people that otherwise could not get good financing. The FHA, or Federal Housing Administration, lending is sponsored by HUD or the Department of Housing and Urban Development, and the VA financing is sponsored by the Department of Veteran Affairs. They are typically not directly given, but are guarantee programs that offer the lender security for lending to borrowers that qualify through federal guidelines. Determining if traditional financing or a federal home loan is best for the borrower is dependent upon the purpose.