VA Loans

(Department of Veterans Affairs)

The Department of Veterans Affairs established criteria for eligible U.S. military veterans interested in the purchase of a new home or refinance of an existing home.

First, the veteran needs to determine if they qualify for a VA loan by obtaining a certificate of eligibility from their local VA office or their lender may also request the certificate. The VA does not loan the money directly to the veteran, but rather guarantees the loan for the lender in case of default. The veteran obtains the loan from his or her chosen lender.

Highlights of the Federal VA loan program:

• No down payment (unless required by the lender or the purchase price is more than the fair market value of the property as determined by an appraiser)
• Negotiable interest rate
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation)
• Closing costs are comparable with other financing types (and may be lower)
• No mortgage insurance premiums
• An assumable mortgage by a qualified borrower
• Right to prepay without penalty
• VA assistance to veteran borrowers in default due to temporary financial difficulty

For more information on the VA home loan program, please visit homeloans.va.gov.

To begin the process of using a VA loan to purchase or refinance, please contact me anytime.