Veterans Affairs

• The VA Home Guaranty Service is the arm of the Department of Veterans Affairs that manages the mortgage program for veterans. Under 2010 regulations, the VA mortgage program is open to veterans who meet minimum time in service requirements for times of war and peace from World War II to the present. Under the program, veterans can obtain a mortgage with a favorable interest rate, low down payment and limited closing costs.
  
  

Federal Housing Administration

• The Federal Housing Administration encourages home ownership by insuring mortgages for lenders. This insurance protects mortgage lenders from financial losses in case the borrower is unable to repay the mortgage. By protecting lenders, the FHA reduces the risk lenders assume with each mortgage. Less risk encourages lenders to extend mortgage loans with favorable terms to more potential home buyers. To qualify, you need to meet FHA credit standards and be eligible to finance 96.5 percent of the purchase price of a home.
  
  

Rural Development

• The U.S. Department of Agriculture supports home ownership is rural areas through the Rural Development program. The program is open to prospective homeowners with low and moderate incomes in rural areas. As of 2010, the Rural Development program directly provides loans, guarantees loans from lenders and awards grants to support home ownership. The funds from the program help rural homeowners to build or finance the purchase of a home without a down payment and with no purchase price limits.
  
  

Energy Efficient Mortgage

• An energy efficient mortgage (EEM) allows homeowners to benefit from the savings of an energy efficient home. According to the Department of Housing and Urban Development, you can use an EEM to buy an energy efficient home or make energy efficient improvements and add the cost of the improvements into your mortgage loan. The savings from these improvements increases the amount you can borrow to finance a home. As of August 2009, you can obtain an EEM for an older home that qualifies for improvements, newly constructed homes and homes that do not require upgrades.
  
  

Indian Home Loan Guarantee Program

• The Indian Home Loan Guarantee Program is designated especially for American Indians, Alaska villages and native families and tribes to purchase homes with flexible terms. According to the HUD, the program allows home buyers to make a 2.25-percent down payment for loans larger than $50,000 or 1.25-percent for loans under $50,000. In addition, home buyers do not pay mortgage insurance and only costs 1 percent of the loan, which can be financed into the loan.