FHA-Insured Loans
The Federal Housing Administration (FHA), which is a part of the US Department of Housing & Urban Development (HUD), operates several low-down payment mortgage insurance programs that buyers can use to purchase a home. FHA-insured loans generally require the buyer to make a three percent cash contribution to the down payment and closing costs. FHA-insured loans are available from most of the same lenders who offer conventional loans.

The maximum FHA-insured loan amount for a one-family home ranges from $200,160 to $362,790 depending on local area median home prices and other factors. The Economic Stimulus Act of 2008, which was signed into law by President Bush on February 13, will temporarily raise FHA loan limits. Under the provisions of this law, FHA limits will range from $271,050 to $729,750 for loans approved through December 31, 2008. These limits will be effective when published by HUD in March. Your lender can provide more details about FHA-insured mortgages and the maximum loan amount in your area, or find information on FHA’s loan limits directly from HUD’s Web site.

VA-Guaranteed Loans
If you are a veteran of military service, reservist, or on active military duty, you may be able to obtain a loan guaranteed by the Department of Veterans Affairs (VA), which requires little or no down payment. Get more information about the VA Loan Guaranty program.

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