FHA / VA Loans

The FHA in FHA/VA loans
The FHA part of FHA/VA loans stands for the Federal Housing Administration. This branch of the federal government was formed in the 1930抯 in order to stabilize the mortgage market and make home buying more accessible to a wider demographic of Americans. The FHA part of FHA/VA home loans is designed to provide federal financial home buying assistance to:
.First time home buyers
. Low income families
.Minority home buyers
.People with bad credit
.People with no credit

It is not necessary to meet all of these qualifications in order to qualify for FHA/VA loans through the Federal Housing Administration. These are merely examples of the type of people who usually qualify for these loans.

The VA of FHA/VA home loans
The VA part of FHA/VA home loans is the Veteran抯 Administration. A veteran is anyone who previously served in the United States military. Qualification for FHA/VA home loans through the Veteran抯 Administration requires that the person be a veteran or a spouse or widow of a veteran. There are more specific guidelines regarding honorable discharge and time served in and out of wartime which will affect qualifications for specific FHA/VA home loans. These details can be reviewed with a customer service representative for the Veteran抯 Administration or with the lending institution.

The details
The major difference between FHA/VA home loans is the veteran qualification. Similarities between FHA/VA home loans are the people served by the loan and the method of loan disbursement. The FHA/VA home loans are federally funded. The federal funds are disbursed to the lending institution and that is who the repayment of the loan will be made to; however, FHA/VA home loans remain federal loans until repaid and failure to complete repayment will be sanctioned.

The purpose
FHA/VA home loans are designed to help more people have access to home buying. The Federal Housing Administration works to make housing accessible to low income and minority borrowers in order to diminish racial and socio-economic disparities in home equity and verifiable assets. The Veteran抯 Administration works to assist those who have served the country in obtaining the American dream of owning a home. FHA/VA loans assist the economy by stabilizing the mortgage market and increase socio-economic equality.