What Are Government Loans?

"Hi, this is Jim DiVietri from Alight Home Mortgage in Lansing, Michigan on behalf of Expert Village. Another segment of mortgages are called government mortgages. This is FHA, VA loans and Rural Developments. These loans have come in and becoming popular again within the last six months for us here in the mortgage business after the fiasco that's happened with the sub-prime. If you haven't heard with the sub-prime, a lot of lenders are not lending money to people that have border line credit any more. You either have good credit or they're not going to lend you money. Interest rates are coming down for people that have good credit. Well, the government has stepped up a little bit with FHA, Rural Development and VA loans and if your income can support you buying a house and you've made your mortgage payments for the last twelve months or you've made rent payments for the last twelve months, there are loans available out there for people who don't have good credit but have the income to support buying a house or refinancing and have made twelve months consecutive without missing one house payment or rent payment. The other side of th story with the government is if you ever worked with the government before. Sometimes you fill out three papers for a regular mortgage but you have to fill out five papers for the government because two other people want to read about what you're actually doing with the people that are actually in control of the mortgage and they have nothing to do with it but they get two extra papers to read because somebody's got to have a job somewhere. So not to cut the government down, it's just a couple more hoops to jump through with a government loan and thank God for a lot of people that those loans are out there right now. We're putting a lot of people in VA, FHA mostly and Rural Development. Now Rural Development are the people out in, in the Lansing area, the people on the outskirts of Lansing, in Dewit, in Mason, in Potterville, Portland, so these, the government does have a niche and they're filling in right now and picking the slack up for what is happening with the sub-prime debacle."