VA Loans (Veterans Affairs)
VA guaranteed loans are originated by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans. This guarantee denotes that the lender is protected against a loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan, and the borrower usually receives a lower interest rate than is normally available with other loan scenarios.
Other benefits of a VA loan include:
- 100% Financing, No down payment required
- Closing costs comparable – and sometimes lower - than other financing types.
- No private mortgage insurance (PMI) requirement.
- No Prepayment Penalty
- Tarnished credit history is acceptable
- Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
- Cash out is allowed on refinances
- Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount. Some veterans are eligible for this fee to be waived, so please contact us to find out how.
A VA loan can be used to buy a home, build a home, refinance a home, and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.
Click HERE to find out how our Web Lgy system can tell you if you are eligible in seconds!
