If you or your spouse served in the military, you might be eligible for a special home loan for Veterans called the VA loan. Your service to your country deserves to be repaid with a little extra help when you’re buying a home and that’s exactly what the VA home loan can do for you.
What are VA loans?
VA loans are home loans that are guaranteed by the U.S. Department of Veteran Affairs (VA). This guarantee protects lenders from loss if you don’t repay your loan, so it is considered a low-risk loan to the lender, which means more benefits for you. VA charges a Funding Fee which can be paid in cash or may be rolled into the loan. If the Veteran receives service related disability, the VA Funding Fee is waived in most cases.
Why choose a VA loan?
A VA loan has numerous benefits:
- Closing costs are comparable to other loan types, and they can sometimes even be lower.
- Most of the time, you don’t have to make a down payment.
- Your interest rate will generally be lower than the rates on other loans.
- You are not required to pay mortgage insurance.
- If you sell your home, the buyer may be able to take over (assume) the mortgage from you.
- No pre-payment penalty.
- If you run into financial problems or are facing default on your loan, you can take advantage of special counseling and assistance available through this loan program.
What can a VA loan be used for?
A VA loan can be used for a multitude of purposes:
- Buying a home
- Building a home
- Making approved home improvements by adding energy-saving features (like insulation, weather-stripping, caulking, storm windows/doors, updated heating/cooling systems, etc.)
Do I qualify for a home loan?
You can apply for a VA loan at any mortgage lender that participates in the VA home loan program, but you must meet eligibility requirements set by the VA. Not sure if you meet the requirements? We can help you determine your eligibility and apply for the loan.