VA Mortgage Loans for Veterans
VA loans are home loans programs offered for purchases or refinances of primary residences available to borrowers who have served or are presently serving in the U.S. military. The loans are partially guaranteed by the Department of Veterans Affairs (VA) so that lenders may offer these programs with additional advantages to borrowers over conventional or FHA loans.
Eligible borrowers include veterans, active duty personnel, Reservists, National Guard members, and surviving spouses
Some of the advantages of VA loans may include:
- No down payment
- Buyer informed of reasonable appraised value.
- Ability to finance the VA funding fee in the loan amount
- Closing costs are comparable with other financing types (and may be lower).
- No mortgage insurance premiums.
- An assumable mortgage.
- VA assistance to veteran borrowers in default due to temporary financial difficulty.
- Loan amounts up to $417,000, or more in high-cost areas.
- More lenient credit standards to qualify for the loan than for conventional programs
The VA loan allows veterans 100% financing without private mortgage insurance. To cover the cost of the VA guaranty for this risk, a VA funding fee of 0.00% to 3.30% of the loan amount is paid to the VA through closing costs, or rolled into the loan amount.. The VA funding fees varies based on the type of service, down payment, number of times used, and whether the vet is disabled or not.