Using Government Backed Loan Options To Purchase a Home or Business

If you are interested in becoming a homeowner or a business owner, there are certain mortgage options available from the government that can save borrowers a significant amount of money. If you are interested in buying a home or operating a business and want to know more about your financing options, Preferred Capital Funding can help. Read on to learn more about government backed loan options.

USDA Loans

USDA loans are a financing option that are intended for people living in eligible rural or suburban locations. They are a type of non-conventional loan that are backed by a government agency known as the USDA Rural Development Guaranteed Housing Loan Program. They were originally created in order to help boost the economy and the quality of life in rural American areas and they help lower income family homes the opportunity to obtain a property without requiring a down payment. In addition to making home ownership more affordable, USDA loans have lower interest rates, less stringent credit requirements, and lower private mortgage insurance rates with the option to finance the cost of insurance into the loan.

504 Green Loans

If you are interested in operating and growing your small business and transitioning to a more energy efficient operation, SBA 504 green loans can offer economical financing for the purchase of property and equipment. SBA 504 green loans are offered by the SBA (Small Business Administration) and the US Department of Energy and help businesses implement improvements to energy efficiency. The loans can be used to purchase real estate property and equipment and focus on helping businesses utilize renewable energy. Not only do these loans help to improve the environment, but they also help businesses save money by reducing the cost of operations and increasing business profits. To qualify, a business must be operated for a profit, have a net income of $5 million or less, and owner occupied by 51% or more.

Agency Loans

Agency loans are one financing option that can help you buy or refinance a multifamily property. These loans are offered by the government sponsored entities, (GSEs), Fannie Mae and Freddie Mac, (which are sometimes referred to as “agencies”) and provide loans for people intending to purchase manufactured or multi-family housing that produce an income. Agency loans offer several benefits, competitive rates, and lower fees, but it is important to note that the eligibility requirements are fairly strict, and require good credit and savings worth 100% of the loan amount.

If you are interested in learning more about government backed loans to help you purchase or refinance a home or business contact Preferred Capital Funding today for a consultation.