We offer government-backed mortgage programs to help as many people as possible achieve the dream of homeownership, including first-time homebuyers, Military Veterans, and those looking to buy in a designated rural area. Let us find a government loan for you!



What is an FHA loan?
An FHA loan is a type of mortgage product that is backed by the U.S. government (specifically, the Federal Housing Administration) and is available through participating lenders like Homeowners Financial Group. Due to their low down payment requirements and flexible eligibility guidelines, FHA loans are a great option for first-time homebuyers and those without perfect credit or significant cash assets.

What are the requirements for an FHA loan?
FHA home loans require borrowers to have a minimum 500 credit score and a minimum down payment of 3.5 percent of the purchase price (a minimum down payment of 10 percent is required with a credit score lower than 580). There are maximum debt-to-income requirements as well, but the calculations can vary depending on whether your total debt includes student loans.

Are FHA loan rates higher than conventional rates?
Mortgage interest rates depend on a variety of factors, including market conditions and your specific borrowing and financial situation.

Do FHA loans have PMI (Private Mortgage Insurance)?
FHA loans do not require private mortgage insurance (PMI) with a down payment of less than 20 percent of the purchase price. They do, however, require their own type of mortgage insurance regardless of the down payment amount. FHA mortgage insurance can’t be canceled if you make a down payment of less than 10 percent unless you refinance to a non-FHA loan. If you put 10 percent or more down on an FHA loan, you pay mortgage insurance premiums for 11 years unless you refinance.

What is the mortgage insurance premium on FHA home loans?
Mortgage insurance on an FHA home loan includes an upfront premium of 1.75 percent of the loan amount that you can pay at closing or roll into your loan. In addition, you’ll pay a monthly premium of 0.45 percent to 1.05 percent of the loan amount (the amount of the premium is based on the loan term and the amount of your down payment/equity in the property, also known as the loan-to-value percentage).


What types of VA loans are available?
We offer VA loans for conforming mortgage limits, jumbo VA loans for home loans that exceed those limits (such as luxury properties and homes in higher-cost areas), and VA Interest Rate Reduction Refinance Loans (IRRRL) for those with existing VA loans who are interested in lowering their interest rate.

Are VA loans zero down?
Yes. No down payment requirement is one of the benefits for those who qualify for VA home loans, which are available for active, non-active, or retired members of the U.S. Armed Forces who have a minimum credit score of 550 and meet the established service requirements.

Do VA loans require mortgage insurance?
No. You are not required to pay private mortgage insurance (PMI) on a VA loan if you do not have a 20 percent down payment. This is another of the benefits for those who qualify for VA home loans, which are available for active, non-active or retired members of the U.S. Armed Forces who meet the established service requirements.


What is a USDA loan?
The USDA mortgage program helps families living in rural areas make homeownership a reality with zero down payment requirement for primary residences. Eligible applicants may buy, build, rehabilitate, improve, or relocate a dwelling in an eligible rural area. Providing affordable homeownership opportunities promotes prosperity, which creates thriving communities and improves the quality of life in rural areas.