So many different types of loans FHA, VA, USDA …OMG What!?

Asked by Allen, Beaverton, OR Mon Nov 5, 2012

Can you help me out with some details...

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, ,
Tue Nov 6, 2012
Hi Allen,

All 3 of the mortgage options you mentioned are backed by the Federal Government which makes them very attractive to banks and investors. A great thing about them for consumers is the interest rates are extremely low even for borrowers with credit scores as low as 620.

Here's a run down on all of these options.

VA - This is the best option available if your a Veteran or active duty military. It doesn't require a down payment or monthly mortgage insurance. It also has the most lenient guidelines when it comes to foreclosures and bankruptcies.

You can find more information on my VA mortgage website here:

USDA - This is the 2nd best program out there but it does have some restrictions. The home has to be in an eligible rural area which Beaverton is not. You would need to look in areas like Forest Grove and Sherwood.

This link will show which areas are eligible.

USDA also has county income limits based on the total number of people living in the household.
For 1-4 person household the maximum annual income is $83,950.00 in Washington County.

Even with these "restrictions" the USDA program still offers some great benefits.
One of the best things about this mortgage is the monthly mortgage insurance is substantially less than an FHA or conventional mortgage and that's with no money down.

Here's an example: An FHA mortgage of $155,000 is going to have a monthly mortgage insurance payment of $161.45 but on a USDA mortgage it's only going to add $51.66 to your monthly payment.

The other nice thing is you can actually roll your closing costs into the loan as long as the appraised value supports it.

You can find more information on my USDA mortgage website here:

FHA - Is still a great option even though it's become more expensive over the last couple of years due to increases in the monthly mortgage insurance. FHA only requires a 3.5% down payment which can be gifted to you or come from a down payment assistance program which makes it as close to no money down as a USDA or VA mortgage.

The key is figuring out which option best fits you and your families needs based on your goals and your qualifications.
1 vote
That's a lot of good info! Thanks
Flag Tue Nov 20, 2012
Mike Sullivan, Agent, Gainesville, FL
Tue Nov 6, 2012
Just a couple of thoughts...not all of these loan programs are available to everyone...VA is for veterans only, and you need to have a certificate of eligibility, USDA applies only to rural properties, and not all homes will qualify.....
That being said, all are competitive programs, with certain eligibility requirements, best to speak to a loan officer to determine the one best suited for you!

Hope this helps
0 votes
Craig Loughr…, , Oregon
Tue Nov 6, 2012
Of the three programs you specifically referred to, all are programs sponsored by the federal government that require little or no down payment. But each loan type has qualifying criteria that is slightly different from the others. The best thing you can do is talk to a loan officer, who can tell you about all the qualifying details, costs and paperwork associated with each loan type.

If you don't already have a loan officer you know and trust, I would be happy to refer you to one.

Best Wishes.
0 votes
Wayne Olson, Agent, Portland, OR
Mon Nov 5, 2012
Hi Allen,

Different loan programs have different qualifying criteria and different down payment requirements. Would you like me to put you in touch with an experienced loan officer who can answer your questions?


Wayne Olson, REALTOR®
Windermere Real Estate - Lake Oswego, OR
(503) 389-3025
0 votes
, ,
Mon Nov 5, 2012
How much do you have to put down?

If you are a Veteran it is one of the better loan programs out there and would be my first choice.
0 votes
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