Explore the differences between a FHA, VA, and USDA home loan.
A government-backed mortgage is a type of home loan that is insured by an agency of the federal government. These loans typically feature no or low down payment options and flexible credit guidelines because they’re seen as safest from the point of view of the lender. If you're a veteran, first-time homebuyer or low- to middle-income family, a government-backed mortgage can be a reliable, affordable option.
Federal Housing Authority (FHA), Veterans Administration (VA) and U.S. Department of Agriculture (USDA) are government-backed mortgages featuring no or low down payment options and flexible credit guidelines.
What is an FHA Home Loan?
An FHA loan is a great option if you're a first-time homebuyer or have a low credit score. FHA loans are typically easier to qualify for than conventional mortgages. They also allow you to pay as little as 3.5% for a down payment.
What is a VA Home Loan?
VA loans are available to eligible active-duty military personnel and veterans. You can get up to 100% financing without a down payment or monthly mortgage insurance.
What is a USDA Home Loan?
Low- to middle-income families in some rural and suburban areas may be eligible for USDA loans. The USDA's Rural Development division partners with approved local lenders to offer some rural and suburban homebuyers up to 100% financing. These loans have flexible credit guidelines and do not require a down payment.
No or low down payment.
VA and USDA loans offer no down payment—Up to 100% financing. FHA requires a 3.5% down payment.
Flexible credit guidelines
Government loans offer more flexible credit guidelines than conventional loans.
Popular for refinances, too
FHA and VA Streamline loans are available to easily refinance at a lower interest rate—even if your home value is less than the loan balance.
When you get a government-backed loan through Midland States Bank, you'll benefit from our:
Loan eligibility for government-backed mortgages includes:
You need mortgage insurance for FHA loans. They require an upfront mortgage insurance premium and monthly mortgage insurance. Premium and monthly mortgage insurance rates vary based on your loan term and down payment amount.
VA and USDA loans do not require mortgage insurance.
Applying for an FHA, VA or USDA loan through Midland States Bank is quick and easy. You can get help from one of our mortgage experts or start a secure online application.
Midland States Bank is a diversified financial services company with branch locations in Missouri and Illinois. When you work with us, you'll benefit from the strength and stability of a top financial institution. We put our heart and soul into every relationship and interaction to give you world-class service.
If you're interested in getting a government-backed loan, we make it easy for you to start. Contact one of our local mortgage experts to review your options. You can also begin an online application now. The process takes just a few minutes to complete.
