Borrow with the Security You Need
NYFTY Lending is excited to offer a full suite of government-backed purchase loans, including industry-leading programs insured by the VA, FHA, and USDA. Explore your options below.
What Are Government-Backed Purchasing Loans?
Insured by the U.S. Government
Government-backed loans are supported by federal agencies like the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA).
Flexible eligibility requirements
These programs offer flexible qualification requirements for borrowers with unique financial backgrounds, a history of military service, and those who are purchasing a home in a rural area.
Ideal for first-time homeowners
Government-backed purchase loans are well-suited for first-time buyers who are entering the housing market with manageable down payments, lenient credit requirements and competitive interest rates.
Types of Government-Backed Mortgages
FHA Purchase Loans
FHA loans are designed to help borrowers with limited financial resources purchase a home and may accept as little as 3.5% down.
VA Purchase Loans
VA loans help Veterans and eligible spouses buy a home with no down payment and competitive interest rates. This puts homeownership within reach of more military families.
USDA Purchase Loans
USDA loans encourage ownership in less populated regions and can be used to purchase a home in an eligible rural or suburban area.
Pros
- Easier access to homeownership
- Some programs require no private mortgage insurance (PMI)
- May also allow for renovations
- Potential to roll closing costs into the loan
Cons
- Strict property condition requirements
- Potentially higher mortgage insurance costs
- USDA loans require living in eligible rural areas
- Fees may still apply
Talk to our mortgage experts today about finding the right loan for you.
Alternatives to a Government-Backed Mortgage
- Offered by private lenders without government backing
- May require a higher down payment and credit score
- Have more rigid eligibility requirements
- Fewer restrictions on property type
- Borrowers pay just the interest for a specific period
- Monthly payments are initially smaller
- Principal payments start later
- Payments increase when principal is addedÂ
- Available for senior homeowners
- Allows the purchase of a new home without required monthly mortgage payments
- The loan is repaid when the homeowner moves, sells, or passes away
- Lets seniors age in place
How Do I Know If a Government-Backed Mortgage Is Right for Me?Â
You have limited income or savings for a down payment
USDA loans are available for individuals and families who fall within income guidelines and require no down payment.
You are a Veteran, active-duty member, or eligible spouse
VA purchase loans offer unique benefits only available to military families. If this applies to you, a VA loan could be the right fit.
You’re a first-time homeowner
Mortgages backed by government agencies are often tailored to meet the unique needs of first-time borrowers and make homeownership more accessible to a wider range of people.
When Is the Best Time to Take Out a Government-Backed Purchase Loan?Â
The best time to take out a government-backed mortgage is when you have limited savings for a down payment, a less-than-perfect credit score, or are a first-time homebuyer. These loans are also beneficial if you’re looking to buy property in an underpopulated area.
Government-backed mortgages can also be a great option if you’re seeking to refinance and want to access competitive interest rates or more favorable loan terms without high upfront costs. FHA and VA loans can also provide borrowers with predictable monthly payments and are ideal for those looking for financial stability.
Get In Touch With A Loan Officer Today
FAQ
Can I use a government-backed mortgage for a manufactured or modular home?
Can I use a government-backed mortgage to buy a second home or investment property?
No, government-backed mortgages are generally intended for primary residences only. FHA, VA, and USDA loans are designed to help borrowers purchase homes they plan to live in. However, there are some exceptions for borrowers who purchase a multi-family residence with 4 or fewer units, provided they live in one of the units.
What happens if I sell my home before paying off a government-backed mortgage?
If you sell your home before fully paying off a government-backed mortgage, the loan will be paid off with the proceeds from the sale. Any remaining balance after the sale price is applied will need to be paid, if applicable.
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