How To Apply For Government Home Loans

Government loans are available through the FHA to those wanting to buy a home. FHA home loans help particular groups of people qualify for a home loan that they otherwise may not receive by guarantying the loan, which will be made by a regular lender. There are different types of home loans that the FHA will guarantee and you must meet all qualifications for your particular loan program. The following steps outline the best road to take in order to receive a loan that is guaranteed by the FHA.

1. First, you should visit the FHA website to see if you can qualify for any of the loans they offer. There are three main loans available to those looking to purchase a new home:
   • A loan for first time homebuyers. You must be buying a home for the first time, meet credit qualifications, and be approved by an FHA lender to receive this loan.

   • A loan for those buying a home that needs repairs. The loan will pay for both the purchase price of the home, as well as the cost of fixing up the home. The only qualifications for this loan are you meet credit requirements and are approved by an FHA lender.
   • A loan for those who want to buy a mobile home or manufactured home. Qualifications for obtaining this loan are the same as those for obtaining a loan for buying a home that needs repairs (above).

   You must fall into one of these categories to receive a loan to buy a home through the FHA. They do also offer a loan for those wanting to upgrade their current home to make it more energy efficient, and they have a reverse loan available to seniors. Neither of these is for those wanting to buy a new home.

2. Once you decide what kind of loan you can use and have determined that you meet the qualifications, you can then apply for the loan. You may need to meet with a HUD-approved housing counselor (the FHA is a section of HUD -- the US Dept. of Housing and Urban Development) before or after you apply to help decide which FHA lender is best or if you just need some help and advice during the application process. 
3. If you are approved, you should then find an FHA lender. You must use a lender approved by the FHA in order for FHA to guarantee the loan.
4. Once you find a lender, you will need to apply and qualify for a loan through the lender just as you would if you were not going through the FHA. The good news is that you may qualify for a loan that you previously would not have, since the FHA is promising the lender payment if you default on the loan.
5. Once you have approval from the lender, you may want to begin shopping for a home, if you have not done so before now. Be sure to know how much you can afford on a monthly basis and stick to your price range.
6. After that, it is just a matter of negotiating a reasonable price with the seller and closing on the property.

With an FHA loan you may only need a small down payment (minimum starts at 3% for a first time home buyer loan) and you also may be able to use the loan to pay for all applicable fees associated with the loan, such as closing costs.