Updated January 2018
What Is A VA Loan?
The U.S. Government created the VA loan the help those brave men and women who serve our country purchase a home. VA Loans are guaranteed by the U.S Department of Veteran Affairs. This program has many distinct advantages over traditional mortgages and has placed over 20 million veterans and their families purchase a home of their own.
The Benefits of Using a VA Loan
VA loans are long-term financing options for eligible American Veteran and their spouses.
There are many benefits of a VA tailored mortgage to help Veterans get the assistance they need to get into a home and a reasonable financial situation.
- %0 down
- VA loans don’t require a down payment unlike most loans that require down payments up to 20%
- No PMI
- Private Mortgage Insurance (PMI) is something that is required for buyers that are financing more than 80% of their home. However, if you are applying for a VA loan, the government backs these mortgages and does not require a PMI for Veterans.
- Competitive Interest Rates
- The VA guaranty gives lenders a degree of insurance and flexibility which allows them to lower rates for Veterans that may be lower than most other loans.
- Easy to qualify for
- The government funds this program making fewer qualifications for Veterans to have to worry about.
- Reduced Closing cost
- If you have a service-related injury, you may qualify for waived funding fee, this will lower the closing cost of your home
- Right to Prepay without penalty
- Negotiable Interest rates
- Assumable mortgage
Do I Qualify for a VA Loan?
If you are a Veteran, an active duty personnel, in the National Guard, or a surviving spouse, then you may qualify for a VA loan. Veterans can apply with any mortgage lender that participates in the VA home loan program.
However, they will need a certificate of eligibility for the loan. In some cases, they can attain this from the lender. The eligibility requirements are a suitable credit score and a sufficient income to insure the borrower will remain in good standing with mortgage payments.
If you or your spouse may qualify for a VA loan check out your options and talk to a lender today. This program is created to thank you for your service and help you find your dream home.