The FHA MORTGAGE - Backed by the Department of Housing and Urban Development, these mortgages offer the borrower the ability to put as little as a 3.5% down payment - and they even finance "allowable" closing costs. The Seller can contribute up to 6% of the purchase price to the buyer towards closing costs and pre-paids.
The VA MORTGAGE - Backed by the Verterans Administration and the federal goverment, it is similar to FHA except that you have to be a qualified Verteran or military person. This mortgage offers the borrower a 100% loan. The Seller can contribute up to 6% of the purchase price to the buyer towards closing costs and pre-paids.
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