FHA and VA Loans are insured by the Federal Housing Administration and Veterans Affairs, meaning homebuyers have an easier time qualifying for a mortgage. Those borrowers who typically benefit the most from an FHA or VA loan are first-time homebuyers and those who have less than perfect credit.
Fixed Rate Mortgages: Your rate and payment never change.
Adjustable Rate Mortgages: Fixed rate initially, then adjusts either annually or semi-annually.
For Purchase transactions FHA loans require a minimum down payment of 3.5%; VA loans may allow for as little as 0% down payment depending on eligibility requirements.
FHA & VA loans are only available to borrowers who are purchasing a property with the intent of using the home as their primary residence.