Government Loans

A government loan is a mortgage that is guaranteed or insured by a government agency. Government loan programs were created to provide solutions for clients seeking flexible credit qualifying requirements with low out-of-pocket costs.

Government Loans offered through Home Federal 

Federal Housing Administration (FHA)

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA). Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a 3.50% downpayment, which can be gifted by a family member and you can have less-than-perfect credit. An FHA loan requires two kinds of mortgage insurance premiums: one is paid in full upfront or it can be financed into the mortgage loan amount, and the other is a monthly payment.   

Veteran’s Administration (VA)

A VA loan is a mortgage that is guaranteed by Department of Veterans Affairs, and offers financing for qualified veterans, reservists, active duty personnel, or eligibile family members to purchase or refinance a primary residence. This loan type does not require a downpayment or mortgage insurance, and has flexible income, debt, and credit requirements. Like FHA loans, VA loan applicants can pay closing costs with gifted or granted funds. You may be required to pay a one-time funding fee that can be financed into the mortgage loan amount. 

Rural Development (RD) Guaranteed Rural Housing (USDA Mortgages)

RD or USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.  An RD home loan is a zero down payment mortgage for eligible rural and suburban homebuyers to purchase an owner-occupied primary residence.  Closing costs associated with the purchase and the upfront guarantee fee may be included in the loan amount.  Income limits to qualify for a home loan guarantee vary by location and depend on household size.  

State Sponsored Programs:

Minnesota HousingMinnesota Housing Finance Agency (MHFA)

The MHFA loan program is available to help low to moderate income individuals in Minnesota that may need downpayment and/or closing cost assistance to help qualify for a FHA, RD, or Conventional loan. There are two programs to help finance the purchase of a new primary residence or refinance an existing primary residence. The Start Up program is for a first time homebuyer, and the Step Up program is for a non-first time homebuyer or to refinance an existing primary residence.

Iowa Finance Authority (IFA)

The IFA loan program is similar in nature to the MHFA loan program, except it applies to Iowa residents only. The program is available to help low to moderate income individuals that may need downpayment and/or closing cost assistance to help qualify for a FHA, RD, VA, or Conventional loan to finance the purchase of a primary residence. The program is available to first time homebuyers and non-first time homebuyers.

Please contact one of our local mortgage experts to apply for or discuss government loan options.


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