Government-Backed Loans Offered By Prodigy Lending In Newark, Texas
The US government, having witnessed the struggle that Americans would go through while trying to find a home for their families, decided to come up with various mortgage loans to help people afford to house. Backed by the Department of HUD, the Federal Housing Administration decided to come up with these loans, which are offered by private lenders but insured by the FHA in case a borrower defaults. FHA loans have since become a popular choice for a mortgage loan all across America, Texas and Fort Worth in particular. The US Department of Agriculture also administers another mortgage loan known as the USDA loans to mortgage borrowers who look to settle on the rural sides Fort Worth where there is plenty of lands. Another US department that decided to assist US citizens to actualize their dream of homeownership is the Department of Veteran Affairs. They offer a mortgage loan known as the VA loan to eligible veterans, military servicemen, members of the National Guard and Reserves and in some cases, even surviving spouses of servicemen who died due to service-related complications.
Because all these loans are insured by the government, there is less risk involved to the private lender and thus less stringent qualification requirements are put in place. In Fort Worth where a majority of the population comprises of middle-class families, these government-backed loans are enabling people of all sorts and races to achieve their dream of homeownership. They are for people with low credit scores, high debt-to-income ratio, and very little money set aside for down payment to qualify and this gives them a very big advantage over conventional loans.
The Prodigy Lending Team is a firm that provides high-quality mortgage loans and services, at good rates for citizens of Fort Worth. Prodigy lending offers all the government-backed loans mentioned above with the following benefits:
- Little or no down payment – Prodigy lenders require that FHA loan borrowers in Fort Worth pay 3.5% of the total mortgage amount upfront as a down payment. The other two loans; VA, USDA loans are both offered at 0% down payment, which means that they offer 100% down payment.
- Attractive Interest Rates – Because the above-mentioned loans are insured by the government, the prodigy lending team does not charge an interest rate on them as high as that of conventional loans. They are charged according to the market standards but at a bit lower. This is because there is less risk associated with them.
- High debt to income borrowers qualify – All these government-backed loans are meant to help people with high debt and low credit scores afford homes. Therefore, the requirements for all the three government-backed loans in terms of a debt-to-income ratio less strict, hence people with high debt-to-income ratio can qualify.
Other than these government backed loans, prodigy lending also offers conventional loans which at relatively low interest rates and low down payment. Even though the risk associated with them, the prodigy lending team still offers them with very low requirements. They also hire a number of mortgage brokers to help them source for clients and understand their needs better.
Contact us today for more loan information!