Government Home Loan Programs
Mortgage loans insured or guaranteed by the federal government
If you are looking to apply for a mortgage or to refinance your existing mortgage, you may be eligible for a government loan.
Overview of FHA, VA and USDA Loans, the three most common government mortgage loan options:
FHA Loan features
- Gift funds are allowed for down payment and closing costs
- May be easier to qualify for than some conventional loans
- Up-front Mortgage Insurance Premium can be financed
- No down payment for some VA loans
- Up to 100% of down-payment and closing costs can be from eligible gift funds
- No Origination Fee, Processing Fee or Underwriting Fee
- Requires an upfront, one-time payment called a funding fee, collected at closing.
VA Loan features
USDA Loan features
- No down payment
- First-time or repeat buyers
- Income and property location requirements apply
- USDA loans are for rural housing
- Requires an upfront Guarantee Fee and an annual Guarantee Fee for the life of the loan.
FHA, VA or USDA Loan - Which one is right for me?
What is an FHA loan?
An FHA home loan is a government home loan mortgage that is insured by the Federal Housing Administration (FHA). Started during the Great Depression, FHA has historically insured quality affordable housing loans made to those who might not otherwise qualify for a mortgage. FHA loans are a popular option for certain first-time home buyers due to flexibility and less stringent credit terms. The down payment can be as low as 3.5 percent of the home’s purchase price.
FHA loans are offered by federally qualified lenders. The FHA charges upfront mortgage insurance premiums as well as annual premiums, and some FHA loans require that these premiums are paid for the life of the loan. There is also a maximum amount that can be borrowed, based on regional guidelines. Purchase and Refinance options are available.
For properties located in a Low-to-Moderate Income (LMI) census tract, or where the loan meets LMI income requirements, we may contribute up to $3,500 towards closing cost and other assistance.1
What is a VA loan?
In addition, to those that qualify, we offer VA home loans for veterans of our U.S. Armed Forces. VA Home Loans were designed to help military members, veterans, and eligible surviving spouses become homeowners. Private lenders such as banks and mortgage companies provide the loans, but the Department of Veteran Affairs guarantees them. While terms will vary, VA loans generally have less demanding credit requirements and require no down payment. While there is no private mortgage insurance for VA loans, the VA charges an upfront funding fee which may be financed into the loan amount.
For properties located in a Low-to-Moderate Income (LMI) census tract, or where the loan meets LMI income requirements, we may contribute up to $2,500 towards closing cost and other assistance.2
What is a USDA loan?
BBVA also offers USDA Loans for rural housing. Guaranteed by the federal government and funded by the bank, USDA Loans may be a good zero-down financing option for borrowers who have not served in the military. USDA charges an upfront Guarantee Fee as well as an annual Guarantee Fee that is escrowed monthly and will be calculated for the life of the loan.
Let us work with you to identify the government program that best suits your needs.
Looking for another option?
Choose from these other mortgage types that might work for you.
Looking for stable monthly payments? With a Fixed-Rate Mortgage, the interest rate on your mortgage loan remains the same for its entire term.
Most adjustable-rate mortgage (ARM) loans feature an initial fixed-rate period, with interest rates adjusting once per year after the fixed-rate term expires.
If you are a medical resident, practicing physician, attorney, oral surgeon, dentist or CPA, a Professional mortgage loan can help you achieve financial flexibility.
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Building your dream home starts with finding the perfect location. With so many considerations to make in preparing to build, let us take care of the lot financing.
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Details you need to make a smart decision
All loans subject to program eligibility, collateral and underwriting requirements and approvals, including credit approval.
1Certain restrictions apply. To receive assistance for LMI loans, the property must either be located in a low or moderate income census tract, or the income of all applicants on the loan must be less than 80% of the FFIEC Median Family Income. Total maximum assistance, including all lender credits, bank paid fees, waived fees, and pricing assistance cannot exceed $3,500. A lender credit of $500 will be applied at closing. Underwriting and processing fees will be waived (an $1,100 value). Additional assistance is applied via a price adjustment and varies by loan size. For Purchase transactions, lender credits cannot be used to offset fees or charges already being paid by the property seller in accordance with the sales contract. Down payment requirements vary by county and FHA guidelines.
2Certain restrictions apply. To receive assistance for LMI loans, the property must either be located in a low or moderate income census tract, or the income of all applicants on the loan must be less than 80% of the FFIEC Median Family Income. Total maximum assistance, including all lender credits and pricing assistance cannot exceed $2,500. A lender credit of $500 will be applied at closing. Additional assistance is applied via a price adjustment and varies by loan size. For Purchase transactions, lender credits cannot be used to offset fees or charges already being paid by the property seller in accordance with the sales contract. All loans subject to program eligibility, collateral and underwriting requirements and approvals, including credit approval. Down payment requirements vary by county and VA guidelines.