October 19th, 2011 | 
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VA and FHA Loans are both great federal backed mortgage programs. When comparing the two federal home loan programs, it’s only natural to wonder which one might be right for you. There are obvious distinctions between military and FHA mortgages. Loan limits, qualifying requirements, down payments and fees can all vary between the two programs. Determining whether VA or FHA is the appropriate loan for a specific situation involves weighing the advantages of both.
Because there is an eligibility requirement with VA loans, some borrowers can rule out this option early if they cannot obtain the Certificate of Eligibility necessary to participate in the VA Home Loan Program. Veterans and active military personnel need to have served for a certain number of days in order to be considered eligible. The Certificate shows how much (if any) entitlement a person has with the VA Loan Guaranty Program. Entitlement is the portion of mortgage that the VA will guarantee for each service person. Loan seekers who do not have entitlement are not VA eligible, and should consider an FHA loan.
Non-VA-eligibility could mean that a person is not affiliated with the military, has not accumulated enough service time, has been dishonorably discharged, or is using full entitlement that has not been restored, or is using partial entitlement that has not been restored and does not have enough entitlement left over for another VA Loan. Whichever the case, FHA can provide an excellent alternative government backed loan program for your mortgage needs.
Some advantages to choosing an FHA loan over a conventional loan may be:
Posted in Fha Loans | 
Tags: Conventional Loan, Fha Loan, Fha Loans, Loan Guaranty Program, Maximum Loan, Military Personnel, Reverse Mortgages, Service Person