Government Loan Products
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.
BBVA offers the following government loan options:
- FHA loan
- VA loan
- USDA loan
What is an FHA loan?
An FHA home loan is a 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 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.
Home Ownership Made Easier (HOME)
Through our Home Ownership Made Easier (HOME) mortgages, BBVA is building stronger communities and helping people achieve the dream of home ownership.
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.
Renovation Permanent Loans
Kitchen remodel, attic conversion, basement finishing, or bedroom add-on—major renovations can add serious value to your home.
You may also be interested in:
Mortgage Myths and Facts
If you're seriously thinking about buying a home, you may be hearing advice from people who haven't purchased a home since the 1980s. The mortgage landscape has changed dramatically in the last several years.
Best Practices: Qualifying for a Mortgage
Buying a home can be the largest and most complex financial decision most of us will ever make. Here's some of our "best practice" tips that may help simplify this process and set you on the path towards your new home.
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.